RICS: Region’s house prices strong amid buyer competition and lack of new stock

Home buyers’ competition and a lack of new properties on the market is said to be keeping regional house prices strong.

According to the latest UK Residential Market Survey from RICS (Royal Institution of Chartered Surveyors) the level of homes for sale across the North West continued to fall in April 2018.

The research suggests that new buyer enquiries fell for the fifth consecutive month in a row last month, while the number of new homes being brought to the sales market fell for the eighth consecutive month.

The ongoing shortage of housing stock is expected to continue to prompt rising house prices over the coming 12 months.

Here in the Liverpool City Region, John Williams of Wirral-based Brennan Ayre O’Neill LLP says: “We’ve seen a noticeable pick-up in the market during April with all key indicators positive.

“Prices are still supported by a lack of stock coming on to market, and competition from buyers is now driving offers above the asking price in some instances.”

In the lettings market, the North West’s tenant demand is said to have fallen in the three months leading up to April and landlord instructions fell.

Simon Rubinsohn, chief economist at RICS, adds: “The housing market typically tends to see a pick-up in activity at around this time of the year and the feedback from respondents to the latest survey does seem to be capturing some of this tone. However, the underlying trend in transactions still remains broadly flat.

“Meanwhile, the impact of recent tax changes appears increasingly visible in the letting results with new instructions from landlords in the three months to end April falling again and at a faster pace than previously. Given what this says about the Buy to Let market at the present time, it is imperative that Build to Rent begins to take on a greater role to ensure those seeking to rent in private sector over the coming years have sufficient choice.”

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