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House Prices in Wales Continue to Edge Upwards

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House prices in Wales continued to edge upwards according to the RICS (Royal Institution of Chartered Surveyors) Residential Market Survey for May, but surveyors remain cautious about the outlook for the next three months.

A net a balance of 21 percent of Welsh respondents to the latest survey said the house prices had risen since March. However, the data regarding price and sales expectations over the next three months is more subdued.

Surveyors expect price activity to be broadly flat in the three months ahead, meanwhile the net balance for sales expectations is +10, indicating that surveyors on balance expect prices to increase marginally in the short term.

Brexit uncertainty appears to be a factor affecting the outlook, with many surveyors anecdotally having pointed to confidence being impacted in recent months.

However, buyers and sellers appear to have been more active in the market in May than they were in April, with the indicators for new buyer enquiries, newly agreed sales, and instructions to sell all picking up from very low levels.

Surveyors are also relatively upbeat looking 12-months head, with a net balance of +37 percent of Welsh respondents expecting prices to be higher in a year’s time.

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

“We saw a steady flow of instructions to sell, viewings and offers during May, despite some continuing uncertainly around Brexit. Many people are clearly making the decision that they don’t want to wait to buy or move home. Surveyors are cautious about the outlook for the next three months but remain more confident about the outlook 12-months down the line.”

The main findings of the latest survey for Wales were as follows (all figures indicate the net balance of respondents):

  • The headline price balance was +21% in the latest survey, indicating that house prices rose.
  • The price expectations balance for the next three months was -2% suggesting that respondents expect prices to be broadly flat.
  • The sales expectations was in positive territory, at +10%.
  • New buyer enquiries rose in May, according to the balance of respondents (+12%)
  • The balance for newly agreed sales was +19%.
  • The number of new properties emerging on the market rose marginally, with the net balance for new instructions of +8%
  • A net balance of +37% of survey respondents expect house prices to rise in the next 12 months.