RICS: Brexit anxiety slowing homes sales

The housing market remains in the doldrums given ongoing political and economic turmoil, according to the latest monthly survey of estate agents by the Royal Institution of Chartered Surveyors.

Describing the market as “subdued”, the body said 16% more surveyors saw a decline in buyer enquiries than an increase, while sales also fell, with a balance of -19% reported on newly agreed sales. 

The firm said the number of homes coming onto the market fell for the fourth month and in every UK region, while the number of appraisals agents were asked to do had fallen to its lowest level since the RICS started collecting this metric in 2017, with a balance figure of -49% of respondents seeing falls.

The firm blamed general election and Brexit anxiety acting on top of the usual seasonal slowdown for the falls.

Despite all of this, the RICS’s survey found agents more optimistic on prices, given lack of supply. Expectations of price movement over the next three months rose from a balance of -7% last month to +5% this month.

Simon Rubinsohn, RICS chief economist, said the survey showed both buyer and seller activity “in a holding pattern, hampered by political and economic uncertainty.” He said: “Given the upcoming general election next month, it appears unlikely that these trends will pick-up to any meaningful extent over the remainder of this year.

However, he added that rental demand appeared to be growing, given low levels of rented housing supply.

Tamara Hooper, policy manager at RICS said: “Persistent government meddling in the private rented sector (PRS) has dampened landlords’ appetites to invest and expand their portfolios, with many consolidating their assets, or leaving the sector altogether.

”In addition, the regular changes to the PRS regime has decreased stability and standards for tenants.”