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UK Residential Market Survey

Steady demand growth and a lack of stock continue to drive prices higher

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Steady demand growth and a lack of stock continue to drive prices higher

The July 2015 RICS Residential Market Survey shows price momentum gaining pace, driven by a further rise in buyer demand while supply conditions continue to tighten. At the national level, the shortage of unsold stock worsened further during July, with the RICS stock per surveyor measure reaching a record low of 47.

New vendor instructions dropped back for a sixth consecutive month with a net balance of 22% of contributors reporting a decrease. The decline was widespread with 9 of the 12 areas of the UK that we monitor experiencing a decline, led by a particularly sharp fall in East Anglia. Meanwhile, Northern Ireland and the North East of England were the only markets to see a noticeable pick up in new vendor listings. Respondents in all areas agree that the lack of property for sale is causing somewhat of a vicious cycle, as the limited choice on offer at present is deterring would-be movers and therefore further restricting new instructions (44% of respondents, in total, felt this was the case). Meanwhile, new buyer enquiries rose for the fourth month in succession at the national level. The vast majority of areas reported some degree of growth with the South East region the sole exception.

Source : RICS

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