House prices continued to edge lower in Wales in September but there were indications that activity might be steadying, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
A net balance of -36% of surveyors in Wales reported that prices fell over the past three months. This is also below the average UK net balance which sits at -15%. Surveyor expectations for prices also remain in negative territory in the short term.
But there were improvements in the data relating to new buyer enquiries and instructions from vendors. A net balance of -8% of respondents said that there was fall in new buyer enquiries, but this was a marked improvement from -28% in the previous survey. Similarly, -4% said that there were fewer instructions from vendors, an improvement from -23% in the August report.
This is yet to feed through to newly agreed sales though, with a net balance of -33% of respondents saying that the number fell in September.
Regarding the rental market, Welsh surveyors report that tenant demand was marginally lower last month (a net balance of -8% of respondents) whilst landlord instructions were reported to have risen (a net balance of +17%). Subsequently, surveyors in Wales expect rents edge lower over the next three months.
Commenting on the sales market, Anthony Filice, FRICS of Kelvin Francis Ltd in Cardiff said that he saw signs of activity in the market in September with new instructions, viewings , offers and sales agreed.
He added:
“Vendors who are flexible and serious about selling are the ones moving. Some are rushing to market, over concerns about the Autumn budget.”
Commenting on the UK picture, RICS Head of Market Research & Analytics, Tarrant Parsons, said:
“The housing market continues to struggle for momentum, with seemingly no clear catalyst on the horizon to spark a turnaround over the near-term. Buyer demand remains subdued, while agreed sales are still on a downward trend, reflecting a broader hesitancy in the market. Ongoing uncertainty around potential measures in the upcoming Budget is also likely adding to the prevailing cautious sentiment.”
