A RICS survey indicates fall in house price growth and market activity
Royal Institution of Chartered Surveyors (RICS)
Royal Institution of Chartered Surveyors (RICS) is a professional organization which oversees the valuation, management, development of land and infrastructure on international standards. With its accredit 125,000 qualified and trainee professionals, RICS is committed to protecting the public interest. The organization has offices across the world and works at cross-governmental level, delivering international standard solutions for a safe and dynamic marketplace in land, real estate, construction and infrastructure. It ensures ethics so that clients are assured of quality.
Recent property survey
According to the RICS UK Residential Market Survey, a number of factors have caused the recent property crisis. These include record stock numbers, political uncertainty, and tax changes. The survey found slowing down of the National price growth indicator, reduction in sales and enquiries and fall in the asking price for expensive homes (£1 million+). It was revealed that Northern Ireland, the West Midlands and the South West saw upward trend. Central London showed the most cautious projection for twelve months. It found that the fall in the number of listings remains the main factor behind the crisis. The lettings market was more subdued.
According to the survey, the housing market is seeing sustained low level of activities. Housing price growth and market activity are on decline, it was indicated in the survey. The level of enquiries has been low for the seventeenth month in a row. It was also found that the prices are expected to remain low for one year but may increase after that. Though there are exceptions which include Northern Ireland, the West Midlands and the South West
Simon Rubinsohn, Rics’ chief economist, said:
“Sales activity in the housing market has been slipping in recent months and the most worrying aspect of the latest survey is the suggestion that this could continue for some time to come.
“One reason for this is the recent series of tax changes but this is only part of the story. Lack of new builds in the wake of the financial crisis is a more fundamental factor weighing on the market.”
It was found that the number of new homes started in London in the second quarter has come down to its lowest since 2012.