April was the 14th month in a row with a negative volume of new properties coming to the market across the UK, the Royal Institution of Chartered Surveyors (RICS) revealed.
In total, 15% more respondents experienced a drop in the number of new properties coming to the market in April.
However, the RICS report also finds that 22% more respondents saw prices rise in April. This was mainly due to the lack of adequate stock available, an analysis showed.
Simon Rubinsohn, Rics’ chief economist, explained:
“Although the picture clearly does vary across the country, the bulk of the feedback we are receiving points to a fairly flat summer for both activity and prices.
Lack of stock on the market remains a key challenge for the sector with recent and forthcoming tax changes having a material impact on transaction levels, particularly at higher price points.”
The effect of this is especially noticeable in London. A research paper that was conducted last year revealed that one in five properties in the capital is sold for £1 million or more.
https://www.buyassociationgroup.com/en-gb/2017/05/10/confidence-uk-housing-market-stable/
Although some time has passed since the report has been put together, the effects of the hefty price tags London automatically brings with it can be felt. And the sales for those homes have now dramatically plummeted.
Whilst prime sales in London have seen a drop of almost 40% over the last year, other areas of the UK have seen an increase in interest. Which isn’t hard to imagine considering that some of the investors who were originally looking at London property might not be looking at the capital anymore.
But they’re probably still looking for property.
