Homebuyers are coming back to the market – but there aren’t enough houses for sale

Homebuyers are coming back to the market - but there aren't enough houses for sale Homebuyers are slowly returning to the property market after the uncertainty caused by the referendum, but there are not enough homes to meet demand, according to the Royal Institution of Chartered Surveyors.

Its keenly-watched monthly residential market survey reported that buyer inquiries are up for the second month running, but there has been further fall in instructions.

The proportion of respondents forecasting that house prices will rise in the next three months rose slightly from last year. Over the next 12 months, they are expected to rise as well; this was the case in every part of the UK except central London, where surveyors predict that prices will remain flat.

This is partly due to a feeling that certain markets are over-priced: 69pc of surveyors in the south-east of England and 50pc in London agree that homes there are overvalued.

Socknersh Manor in East Sussex, on sale with Strutt and Parker, which has been reduced in value by from £4.75m to £3.795m
Socknersh Manor in East Sussex, on sale with Strutt and Parker, which has been reduced in value by from £4.75m to £3.795m

In every area of the UK, more respondents to the survey said they expected the number of homes sold to rise rather than fall in the next three months.

In the long term, the majority of those polled said they thought transaction levels would rise in the next 12 months, but the proportion that said so was lower than last month, signalling a slight loss of confidence that values will hold up.

Simon Rubinsohn, chief economist at Rics, said: “The dire shortage of available housing across the UK is continuing to push prices upwards, regardless of the uncertainty linked to the ongoing discussions surrounding Brexit.”

In a separate report, Knight Frank has found that demand for so-called ‘super-prime’ London properties worth more than £10m has increased, with property fluctuations making these homes more attractive to those abroad.

It said that in the 14 weeks after the EU referendum, the number of prospective buyers for these homes jumped 18.8pc compared to last year, and the number of viewings rose by half.

This was also put down to the fact that many sellers made “overdue price reductions”, although transaction levels are still way below what they were last year due to changes to stamp duty for homes worth over £1m. Knight Frank said that the number of transactions above £10m between January and September declined 17.8pc compared to the same time last year.


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