UK Home Prices Still Rise Despite Cooling Demand: Survey

UK home prices continued to rise in June, although new data showed a decrease in the number of new inquiries from house hunters.

Last month, 27% of real estate professionals reported less interest from prospective buyers, according to a study by the Royal Institution of Charter (RICS). The interest of new purchasers has been sluggish for three consecutive months.

However, London seems to be more resilient, with 7% of respondents reporting an increase in inquiries in June.

Sales volume declined due to easing demand from new buyers. Approximately 13% of respondents reported a newly agreed decline in sales, and 9% forecast a decline in transactions over the next three months.

However, despite chilling demand, home prices continued to rise due to the lack of properties that buyers could choose from.

About 65% of respondents say they saw a rise in home prices in June. This is below the April high of 78%, but above the long-term average of 13%.

Survey participants also said market valuations were about the same as they were 12 months ago, suggesting that the background of tight supply is unlikely to change significantly in the near future.

Housing shortage

RICS Chief Economist Simon Rubinson said, “Pricing in much of the housing market is currently resilient and inventory shortages continue to be a feature highlighted by many respondents to the survey. I commented.

“Buyer inquiries are a bit late, as expected, but this should be placed in light of the healthy demand levels of the previous month,” he said.

Jonathan Hale, head of government affairs for the UK and Ireland at RICS, said the next government must address “further declines in housing availability.”

“We need to prioritize housing, regardless of who is going to be the next prime minister and what their cabinet actually looks like,” he said. Increased housing supply. “

Rents are expected to rise as supply and demand continue to be unbalanced, RICS said.

About 36% of housing professionals reported an increase in tenant demand, and 11% reported a decrease in the number of new landlord instructions. In addition, 52% predict that rent will increase in the next three months.

PA Media contributed to this report.

Alexander Chan