UK property market weakest since 2010 as uncertainty weighs: RICS

[ad_1]

LONDON, Jan 19 (Reuters) – British house prices registered the most widespread decline in 13 years last month as buyer demand and selling activity weakened more sharply than expected in the face of the rising borrowing costs and recession risk, according to a survey Thursday.

The Royal Institution of Chartered Surveyors (RICS) House Price Balance, which measures the difference between the percentage of surveyors seeing rises and falls in house prices, fell to -42 in December vs. -26 the previous month.

The December figure was the lowest since October 2010 and below the -30 that economists had forecast in a Reuters poll.

As for the coming year, the balance of price expectations has fallen slightly again compared to November.

Simon Rubinsohn, chief economist at RICS, said the survey “highlights the challenges in the housing market as first-time buyers grapple with more expensive financing terms and uncertainty over the outlook for housing. economy”.

Prices fell in all English regions, with East Anglia and the South East registering the largest net falls.

Overall in Britain, agreed sales continued to weaken, RICS said, falling to -41. Inquiries from new buyers fell slightly while the number of people putting their homes up for sale was the lowest since September 2021.

The survey results echoed other signs of weak house prices. Mortgage lenders Halifax and Nationwide both posted lower prices in monthly terms as inflation and rising interest rates squeezed home buyers.

A Reuters poll of economists and analysts in November predicted house prices would fall about 5% this year, after jumping 28% since the start of the pandemic in 2020.

Contrary to falling property prices, rents are expected to rise, RICS said. Demand in the rental market is expected to slow further after hitting its lowest level in nearly two years last month, but fewer landlords were offering properties.

RICS also said sellers put a price premium on energy-efficient homes, with more than half of respondents saying this was due to better retention of market value.

Energy bills in Britain and other countries have soared in recent months, hitting the disposable incomes of many households.

Reporting by Suban Abdulla Editing by William Schomberg

Our standards: The Thomson Reuters Trust Principles.

[ad_2]