The outlook for the Welsh housing market remains strong, despite indications of a slowing in the flow of homes being made available for sale, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
Welsh surveyors are the UK’s most optimistic when it comes to the outlook sales during the next quarter. Meanwhile, price expectations for the three months ahead in Wales are also stronger than all other parts of the UK. This follows a July period when prices were flat but newly agreed sales rose firmly, according to survey respondents.
On the supply side, instructions to sell increased marginally last month (a net balance of +7% of respondents saying that they rose), but there was an imbalance in comparison with demand, with the majority of surveyors (+60%) saying that new buyer enquiries were up.
RICS Residential Spokesperson for Wales, and Director of Kelvin Francis, Cardiff, Tony Filice FRICS, says:
“Anecdotally, it seems that there is regional variation across Wales. In demand hot spots, buyer confidence is strong, particularly for 2/3-bedroom properties. Though, in our experience, delays are being caused by lending institutions, conveyancers and surveyors, who had not anticipated the volumes of transactions being experienced.”
David James, FRICS, James Dean, Brecon, said:
“Sales in July are up on last month. We are pleasantly surprised as we thought they would be much the same as June.”
David Owen of Clare Evans & Co in Rhayader, said:
“Sales are buoyant with excellent numbers of viewings and high conversion rates”.
John Caines, FRICS, Payton Jewell Caines, Bridgend Port Talbot Neath, said:
“The supply side continues to create an imbalance in the market and until more properties come to the market the current position is unlikely to change”.
Paul Lucas, FRICS, R.K.Lucas & Son, Haverfordwest, said:
“The West Wales property market remains active at a time of year when such activity would be expected to cool down”.
The main findings of the survey were as follows:
The headline price balance for Wales was +1% in the latest survey, meaning that 1% more surveyors said that prices rose in the past three months than those who said they fell.
The price expectations balance, at +34%, remains in positive territory, as does the sales expectations balance at +30%. The new instructions to sell balance was at +7%, suggesting that there was a relatively marginal increase in the number of new properties coming onto the market. Meanwhile, new buyer enquiries increased according to a net balance of +60% of Welsh surveyors, and the newly agreed sales balance increased to +20%.