Brexit uncertainty is the biggest factor impacting on the housing market in Wales, according to the latest RICS (Royal Institution of Chartered Surveyors) Residential Market Survey.

79 percent of respondents (surveyors) in Wales said that this was the largest influence on the market at present, with a lack of stock the second most cited challenge.

Indeed, the latest figures from the survey point to sentiment being considerably lower in the housing market in Wales during February then they were the month before.

The headline price balance was barely in positive territory last month, and expectations are for prices and sales activity to fall over the next three months.

However, the longer-term outlook is more positive, with a net balance of +37 percent of respondents in Wales expecting prices to be higher in 12-months’ time.

Meanwhile, the indicator for new instructions to sell is at its lowest level in more than 15 years.

RICS Residential Spokesperson for Wales, and Director of Kelvin Francis, Cardiff, Tony Filice FRICS, said:

“There is a degree of caution in the market overall, related to Brexit. However, there are variations when it comes to different regions and property types. For instance, in our experience, activity in Cardiff is steady in terms of viewings and offers, and, for many people, the need to move is a greater factor than the political turmoil.”

The main findings of the latest survey for Wales were as follows:

• The headline price balance was +3% in the latest survey, pointing to house prices being broadly flat.
• The sales expectations balance, at -28%, suggests that sales activity will decrease in the three months ahead. The price expectations balance was at -23%.
• Meanwhile, the newly agreed sales balance was at -2%, pointing to the number of new sales agreed being broadly flat.
• New buyer enquiries edged upwards having fallen in January, according to the net balance of respondents (14%).
• The new instructions to sell balance was at -52%, suggesting that the number of new properties coming onto the market fell sharply.
• When it comes to the 12-month outlook, the net balance of +40% of Welsh respondents expect prices to be higher than they are now in a year’s time.