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House prices continue to be pushed up by shortage of instructions in North
West UK House prices in the
North West of England continued to rise in June 2015, with 53% more of the
region’s surveyors reporting an increase in asking prices; pointing to renewed
acceleration in house price inflation during the 2nd ½ of the year, according to
the latest RICS UK Residential Market Survey. While the average stock of homes
per surveyor remained firm at 61, demand from prospective house buyers in the
North West decreased from 15% to 6% in June 2015, despite a further drop in
mortgage rates from lenders. The West Midlands and London saw the strongest
increase in potential buyers during the month. Over the next 3 months, 46% more
surveyors in the North West expect house prices to rise further, whilst only 15%
of respondents expect sales to increase over the coming months. Across the
rental sector, the demand and supply imbalance is also visible, with
instructions - which have been broadly unchanged for the past couple of years;
showing no signs of a material increase, and are at growing odds with the rising
demand that is putting further upward pressure on rents.
Derek Coates MRICS, of Venmore estate agents in Liverpool said:- "Sales
activity continues to be strong, however the lack of properties coming on to the
market will have an effect on prices."
Simon Rubinsohn, RICS Chief Economist, added that:- "Although much of the
discussion about supply shortages has focused on the owner-occupier market, the
latest RICS Residential Market Survey demonstrates in no uncertain terms that
the issue, at least at a headline level, is just as visible in the rental
sector. This is most clearly reflected in both the house price and rental
projections over the medium term which comfortably exceeds the likely growth in
wages. There had been some hope that the removal of political uncertainty
following the general election would encourage more properties onto the market
but the initial indications are that this is not proving to be the case.
Additionally, the recent flat pattern of appraisals by respondents to the survey
suggests this is not about to change anytime soon As a result, it is hardly
surprising that prices across much of the country are continuing to be squeezed
higher with property set to become ever more unaffordable." |
