Market cooling, prices still rising

15 Jul 2022

Surveyors in the UK are reporting that the country’s red-hot housing market is starting to cool, but that prices are still rising. In its monthly survey, the Royal Institution of Chartered Surveyors (RICS) found that 27% of professionals reported a fall in interest from potential house buyers. It was the third consecutive month that they say that interest from new purchasers has dipped. However, 65% of those surveyed said they had witnessed an increase in house prices, primarily due to a lack of available properties for sale. This is lower than the high of 78% in April, but still considerably higher than the long-term average of 13%. Some 37% said they anticipate house prices to continue climbing over the next year. The Royal Institution revealed that average sales prices for properties valued up to £500,000 were more likely to be above the asking price; in properties priced between £500,000 and £1m, 39% are seeing the sales price beat the asking price; and properties listed at over £1m are generally selling slightly below the asking price. RICS economist, Simon Rubinsohn, notes: “Although buyer inquiries have predictably slipped a little of late, this needs to be placed in the context of the healthy level of demand in previous months. A probably even more striking aspect of the latest report is the concern being voiced about the rental market.” Some 36% of professionals reported an increase in tenant demand, while 11% saw a fall in the number of new landlord instructions. And 52% predicted that rents will rise over the coming three months.

RICS is the world's leading professional body for qualifications and standards in land, property, infrastructure and construction. According to its website, it “promotes and enforces the highest professional qualifications and standards in the development and management of land, real estate, construction and infrastructure.”