Positive news on the property front finally starts to shine a light along with the return of the sunshine to the UK – the supply shortage is showing its first signs of a light at the end of the supply shortage tunnel, according to the latest RICS Residential Market Survey.
Research conducted between surveyors and agents has highlighted the number of new homes listed for sale over the last 12 months has risen, with 8 per cent more respondents reporting a rise instead of a fall in their fresh listings.
During March, new buyer enquiries were also on the increase with a further 9 per cent rise instead of a drop, which is the first time since the early days of the pandemic that survey metrics for supply and demand have begun to line up closely.
Against the Numbers
Whilst it is encouraging with the signs of a small increase in new homes becoming available, the number of properties on estate agent books is still circling the historic lows shown over the last two years, with the number of agreed sales remaining flat in March.
Sales expectations are looking much more positive over the next few months with a net balance of 16% expected, up from February’s 11%. However, only 2% more expect an increase over a fall in sales over the next year.
In the face of such concerns as the war in Ukraine and the macro environment, the housing market is currently remaining resilient. Rising interest rates are currently pushing up the cost of mortgage finance whilst debt servicing is remaining historically low – explaining why new buyer enquiries are currently in a positive space.
The encouraging stock signs returning to the market are extremely welcome, but it remains early days where inventory is not far off of historic lows. Should the trend continue to show signs of improvement, it will help to create a better balance between the gulf of supply and demand.
The outlook for the next 12 months shows little signs of such a scenario materialising, with further increases in prices and a flatter pattern in transactions, but those seeking to buy property in Stockport are encouraged to be vigilant and patient, and witness the positivity for property start to take shape over the next few months.