UK housing market: Rental crisis deepens, home sales improve – RICS

UK housing market: Rental crisis deepens, home sales improve – RICS

0:01 AM, 8th August 2024, About An hour ago

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The UK housing market exhibited mixed fortunes in July as the private rented sector (PRS) continued to grapple with a widening gap between supply and demand.

However, according to the latest RICS residential property survey, the sales market is showing tentative signs of recovery.

RICS says that demand for rental properties persisted at a robust level, with a net balance of +18% of surveyors reporting an increase.

Conversely, sentiment towards landlord instructions remained negative at -16%, indicating a sustained shortage of available properties.

‘Difficulties in the lettings market remain’

The organisation’s chief economist, Simon Rubinsohn, said: “The difficulties in the lettings market remain as intense as ever with little prospect of any relief in sight.

“Demand is continuing to run ahead of supply with many respondents to the RICS survey noting that landlords are looking to reduce holdings in the face of an increasingly hostile environment for investment in the sector.”

The sales market, however, presents a more optimistic picture as new buyer enquiries rose to +2%, marking the first positive reading in four months.

Also, the number of agreed sales improved, though it is still in negative territory.

‘Distraction of the election’

Tom Bill, the head of UK residential research at Knight Frank, said: “Many buyers and sellers were planning their summer holiday in June and July rather a property purchase thanks to the distraction of the election and the prolonged wait for a rate cut.

“With the election over and a 0.25% cut this month, the autumn market should begin with renewed impetus.

“Pent-up demand that built in the first half of this year will be released in the second half as more mortgages fall below 4%.”


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