Brexit uncertainty is being felt in the housing market in Wales, with house prices now flat and surveyors expecting prices and sales to edge lower in the three months ahead, according to the latest RICS (Royal Institution of Chartered Surveyors) Residential Market Survey.
The latest survey is the first in 15 months in which house prices in Wales haven’t been reported to have risen. It is also the fourth survey in a row that Welsh surveyors have pointed to a fall in new buyer enquiries. In addition, newly agreed sales were reported to have been lower than the previous month.
RICS Residential Spokesperson for Wales, and Director of Kelvin Francis, Cardiff, Tony Filice FRICS, says:
“We have seen a reduced number of valuations, listings and viewings as the economic climate has brought nervousness, including amongst potential vendors, holding back sales. However, those who are viewing are still intent on buying.”
Andrew Morgan of Morgan & Davies in Lampeter says:
“A sense of nervousness has come about led by speculation over Brexit fallout. Properties in West Wales still offering fair value though.”
The main findings of the latest survey were as follows:
The headline price balance for Wales was 0% in the latest survey, pointing to house prices being flat.
The price expectations balance, at -25%, suggests that prices will fall in the three months ahead. The sales expectations balance was at -15%, again suggesting that sales activity will decline.
The new instructions to sell balance was at -9%, suggesting that the number of new properties coming onto the market was lower in October.
Meanwhile, the newly agreed sales balance was at -6% suggesting that the number of newly agree sales fell. New buyer enquiries also declined, according to the net balance (-3%) of respondents in Wales.