ResidentialMay 11 2017

Surveyors warn of 'flat' summer for house sales

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Surveyors warn of 'flat' summer for house sales

The UK’s leading surveyors’ body has warned of a ‘flat’ summer for house sales as a lack of choice holds back the market.

The latest residential market survey from the Royal Institution of Chartered Surveyors (Rics) revealed 9 per cent more respondents saw a drop in sales during April - the weakest reading since the aftermath of the referendum on membership of the European Union.

Some 15 per cent more respondents saw new instructions drop in April, while new buyer enquiries were unchanged nationally, having failed to see any meaningful growth since November 2016.

Surveyors cited a lack of choice, uncertainty due to the calling of an early election, and the stamp duty changes as factors hampering activity.

Rics reported surveyors expect the flat picture to continue over the next three months as only 3 per cent expect to see an increase in sales over the time period.

The lack of housing stock continued to drive up prices, as 22 per cent more respondents saw prices increase in April – a figure that was unchanged from March.

But price inflation could slow in the months ahead as only 4 per cent more respondents said they expected near-term gains, down from 11 per cent in March.

Rics chief economist Simon Rubinsohn said: “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. 

“Uncertainty relating to the forthcoming general election is also highlighted by some respondents as a reason for inertia.”

simon.allin@ft.com