Increase in new buyer enquires for third consecutive month

Jessica Nangle

December 8, 2016

There has been a small increase in new buyer enquiries for the third consecutive month, according to the RICS Residential Market Survey.

The strongest growth was again reported in the West Midlands and North West as it was in October.

There was a reported growth decline in London, Wales and the North East according to the survey.

London showed a downward momentum which looks to have eased significantly relative to previous months.

Transaction levels remain positive and have moderated slightly with 20% more surveyors now expecting activity to rise, down from 26% from the previous month.

Stephen Smith, director at Legal & General Housing Partnerships, said: “In spite of all the political upheavals that this year has experienced, the fundamentals of the UK economy and demand for housing continue to go from strength to strength.”

Demand has remained broadly unchanged relative to October on a national level as 9% of contributors report growth in agreed sales in November.

Tenant demand rose at a more moderate pace nationally as 15% more contributors reported a rise rather than fall, however the capital saw a decline and rent expectations are in negative territory for the fifth consecutive month.

Despite London’s data, the outlook over the year to come is positive in all areas with a net balance of 40% of respondents forecasting growth.
Smith added: “With the government’s pledge to inject £1.4bn into the housing market to help tackle our nation’s housing shortage, the future looks brighter for aspirational home owners.

“These legislative changes, coupled with the promise of a housing white paper at the start of the New Year, will hopefully shape the future of the housing market for the better, and tackle this shortage of homes head on.”

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