Wednesday, October 21, 2020

Lack of stock drives up house prices

A lack of stock continues to drive up house prices and slow sales activity across the East Midlands according to the latest Residential Housing Market Survey from the Royal Institution of Chartered Surveyors.

For the second consecutive month chartered surveyors have reported a decline in new homes coming onto the market. This lack of stock is ultimately driving up prices across the region with 36% more respondents reporting price rises over the past three months. Further price growth is also expected for the coming three months, albeit it at a slower rate, with 17% more respondents expecting further price increases.

In addition, 14% of chartered surveyors reported a decline in new buyer enquiries for the second month in a row.

However, despite demand for properties decreasing in November, agents reported a slight rise in agreed sales across the East Midlands. 6% more respondents across the region reported growth in activity over the month but while this is the best outcome since February, caution remains, according to anecdotal feedback.

Supply shortages and the growth in sales activity, albeit only modest, alongside a lack of new instructions, has led to a further decline in homes for sale. Anecdotal comments suggest that many respondents expect the beginning of 2017 to be quiet reflecting the lack of fresh properties coming to market.

Paul Perriam MRICS of William H Brown/Bagshaws said: “Instructions continue to be in short supply. Despite this sales numbers are still healthy levels with multiple buyers in some cases due to the shortage of stock”.

Simon Rubinsohn, RICS chief economist, added: “A key issue for the housing market is the slowdown in transaction activity since the spring which is clearly being reflected in the RICS agreed sales data as well as in the official figures. Although there are some signs that the numbers may begin to edge upwards in the new year, the combination of macro uncertainty, the on-going supply shortfall, with stock levels around historic lows, and the myriad of tax changes impacting on buyers suggest that any pick-up in activity will be relatively modest. This is significant not just for the housing market itself but also for the wider economy given how much of consumer spending is tied in with home purchases”.

In the lettings market, tenant demand continues to outstrip supply. Despite Christmas approaching, 35% more chartered surveyors reported a rise in tenant demand but anticipate this to slow in the New Year.

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

Leicester photographic print supplier secures COVID support

Leicestershire photographic print supply firm, Tetenal UK, has secured a finance facility from HSBC UK through the Coronavirus Business Interruption Loan Scheme (CBILS) to...

Expert NEDs join F Word Academy

The F Word Academy, an online business finance academy, has added two East Midlands business development experts to its executive team. Stuart Ross from High Growth...

Software company acquires online school management system

IRIS Software Group, the privately held software company, has acquired iSAMS, a fully integrated online school management system. Set to grow the scope of the...

Software firm reports 47% revenue growth and secures investment for future expansion

The Access Group, a provider of business management software to mid-market organisations which is due to open a new office at Loughborough University Science...

Watch the 2020 East Midlands Bricks Awards as it unfolds next week

On Thursday 29th October, the 2020 East Midlands Bricks Awards will take place virtually. Business Link’s annual event, the East Midlands Bricks Awards recognises development projects and people in commercial and public...

Related news

Agent appointed to Chesterfield Waterside offices

Knight Frank has been appointed to find tenants for office space in Chesterfield’s newest £340m regeneration project. Construction of No.1 Waterside Place at Basin Square...

Leicester photographic print supplier secures COVID support

Leicestershire photographic print supply firm, Tetenal UK, has secured a finance facility from HSBC UK through the Coronavirus Business Interruption Loan Scheme (CBILS) to...

Expert NEDs join F Word Academy

The F Word Academy, an online business finance academy, has added two East Midlands business development experts to its executive team. Stuart Ross from High Growth...

Software company acquires online school management system

IRIS Software Group, the privately held software company, has acquired iSAMS, a fully integrated online school management system. Set to grow the scope of the...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close