The May RICS Residential Market Survey shows demand contracting for the second consecutive month and falling at the fastest pace since mid-2008. New buyer enquiries declined, to a greater or lesser degree, across most parts of the UK with a net balance of 33% of contributors, at the national level, reporting a fall.
Comments from contributors identify several potential causes of this decline in buyers appetite, with uncertainty over the upcoming referendum on the UK’s membership of the EU by far the most prevalent suggestion. However, respondents in different areas have also reported an absence of demand from buy-to-let investors following the surge in activity that preceded the introduction of an additional layer of stamp duty in April.
Meanwhile, the supply of properties coming available for sale also decreased, with 30% more contributors seeing a fall in new instructions rather than a rise. This represents the most widespread decline since the series began in April 1999. The fall in supply is evident across most parts of the UK with Wales the only area to see a modest increase in instructions.
Source : RICS