Surveyors in Wales remain cautious about the outlook for the housing market with demand subdued and supply weaker, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
A net balance of 1% of surveyors in Wales reported that prices rose over the past three months. Although muted, this is higher than the average UK balance which sits at -13%.
However, looking forward surveyors are cautious when it comes to pricing as a net balance of -18% expect prices to fall over the next three months. Although remaining in negative territory, this is up slightly from the -21% that was seen in the June report.
On the demand side, a net balance of -30% of survey respondents in Wales reported that new buyer enquiries fell through July which is the lowest this balance has been since February of this year.
And market supply levels appear to have dipped too. A net balance of -8% of surveyors in Wales report that new instructions to sell fell through July, which is the first time this balance has appeared in negative territory since October 2024.
With demand and supply both subdued, sales also fell through July. A net balance of -55% of Welsh surveyors reported a fall in newly agreed sales. And similar to pricing, surveyors are hesitant on the outlook with a net balance of -13% of respondents in Wales expecting sales to fall over the next three months.
Regarding the rental market, Welsh surveyors report that both tenant demand and landlord instructions fell flat through July. Subsequently, surveyors in Wales expect rents to be flat over the next three months.
Commenting on the sales market, Anthony Filice, FRICS, Kelvin Francis Ltd said:
“Activity in viewings and sales is starting to slow with the holiday season, but viewers are serious, and sales are being agreed. Vendors need to be realistic in pricing, but confidence remains amongst buyers.”
Discussing the lettings market, David James, FRICS of James Dean added:
“There is still a shortage of rental properties on the market.”
Commenting on the UK picture, RICS Chief Economist, Simon Rubinsohn, said:
“The somewhat flatter tone to the feedback to the July RICS Residential Survey highlights ongoing challenges facing the housing market. Although interest rates were lowered at the latest Bank of England meeting, the split vote has raised doubts about both the timing and extent of further reductions. Meanwhile, uncertainty about the potential contents of the Chancellor’s autumn Budget is also raising some concerns. Against this backdrop, respondents continue to report that the market remains particularly price sensitive at the present time.”
