THE AVERAGE amount of properties available per estate agent fell again in February, according to the Royal Institution of Chartered surveyors, meaning that the number of homes currently for sale across the UK are now at a new record low level.
The data from RICS released this morning also suggests that there are significant regional variations in terms of market activity, with some areas of the UK performing better than others, making a ‘one size fits all’ market very much a thing of the past.
As property values fell again in London, the South East and East Anglia, which previously had seen unprecedented house price growth, other areas of the country, such as Wales, the North West, Northern Ireland and the East Midlands all saw further price hikes last month, probably for the most part due to the lack of available homes to buy.
The report also cautions that new buyer enquires have dropped significantly over the last month - the eleventh consecutive month such a trend has been reported - which some may see as a cause for alarm, however there is a common-sense interpretation.
Brian Murphy, Head of Lending for Mortgage Advice Bureau explained: “Overall, the fact that the number of available properties for sale has fallen to record lows is bound to have an impact on purchasers
"It stands to reason that if fewer properties are on the market for sale, buyer choice is restricted. This means that those who are actively looking are likely to view fewer properties, hence why we would see a reported reduction in new buyer enquiries.”
That said,the data also indicates that alongside regional variations in house price growth, buyer activity is also varying significantly with Scotland, Northern Ireland and Yorkshire and Humberside all seeing levels of property viewings increasing in February, rather than falling.
Simon Rubinsohn, RICS Chief Economist commented: “The consultation announced earlier this week on housing delivery put the onus squarely on developers and planning departments to up their game to lift the supply pipeline, but the feedback to the latest RICS Residential Market Survey casts some doubt as to whether this will be sufficient to address the challenge.”
“Significantly, the longer term national house price indicator has begun to creep upwards once again in recent months despite the current somewhat mixed climate and the private rent series also remains firm, in both cases pointing to increases of at least fifteen percent over the next five years.
“Meanwhile, the divergent regional picture is becoming increasingly pronounced with key RICS indicators across huge swathes of the country still showing considerable resilience but data for London, the South East and East Anglia rather more subdued.”
Founder and CEO of Emoov, Russell Quirk suggested of today’s data: “The market has certainly slowed to an extent, but while some agents are noticing a reduction in buyer enquiries, their experience isn’t completely representative of the wider market.
"Halifax reported yesterday that UK home sales exceeded 100,000 transactions for the thirteenth consecutive month and there was a notable uplift in mortgage approvals, so there is definitely still a big appetite for UK property.”
Russell continued: “A dwindling index of stock alongside sustained buyer interest suggests the market is in better health than many are giving it credit for.
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