The latest report from the Royal Institute of Chartered Surveyors (RICS) has revealed that sentiment in the London property market continued to lack momentum last month, as demand from new buyers and sales fall again.
According to the September RICS UK Residential Market Survey, the shift in interest rate expectations contributed to buyer caution in a slowing market. With buyers waiting on the forthcoming November budget and potential changes in interest rates, recently hinted at by the Bank of England.
When broken down regionally, London and the South East saw a decline in sales. Only Wales and the South West were cited to have seen an increase in sales, while all other parts of the UK saw a slowdown.
Looking ahead over the next three months, RICS is anticipating little change in national sales activity, with expectations slipping. Likewise, the 12-month outlook is also flat at the national level, although respondents are a little more optimistic in Wales, Scotland and Northern Ireland.
As sales and new buyers decline, new instructions to sell were more or less stable for the second report running, having declined continuously for the past eighteen months. Consequently, average stock levels on estate agents’ books held broadly steady (albeit near record lows), at 43.3. Yet demand for housing remains at a all-time high.