insideKENT Magazine Issue 27 - June 2014 | Page 153
PROPERTY
Sustained demand across the
South East housing market in April
RICS UK RESIDENTIAL MARKET SURVEY, APRIL 2014
DESPITE A FOURTH CONSECUTIVE MONTHLY FALL IN NEW PROPERTY COMING
ONTO THE MARKET IN APRIL 2014, 15% MORE CHARTERED SURVEYORS REPORTED
INCREASED AGREED SALES IN THE SOUTH EAST, ACCORDING TO THE LATEST
RICS RESIDENTIAL MARKET SURVEY.
The latest figures reveal a constrained property
market, which continues to be marred by weak
supply and high demand. While respondents
across nine UK regions reported declines in new
property for sale coming onto the market, the
average number of homes sold per surveyor hit
23 – the highest since February 2008.
In the month that also saw new lending regulations
brought into effect (the Mortgage Market Review),
respondents reported that the average ‘perceived’
Loan to Value (LTV) ratios among first time buyers
across the UK climbed to 86%, and potential
new buyer demand remained firm with 25% more
chartered surveyors reporting an increase in new
enquiries in the South East.
Significantly, there does now appear not just a
broadening out in the recovery away from the
capital, but also increasingly upbeat responses
on the likely price trend going forward. In the
South East, 50% more chartered surveyors
predict prices over the next three months will
rise, rather than fall. By comparison in London,
49% more respondents conveyed similar
expectations (down from 61% in March).
In the rental sector, there continues to be modest
growth in tenant demand, although greater
mortgage availability and the ‘Help to Buy’ scheme
have seen the appetite to rent lose some
momentum in recent quarters. Even so, the
shortage of property also continues to be felt in
this area, with new landlord instructions broadly
flat and rent prices over the next 12 months in
the South East expected to increase by around
3%.
Simon Rubinsohn, chief economist, RICS, said:
“House prices in general look set to remain firmly
on the upward trend, although interestingly, there
are some tentative signs that the price momentum
in the London market may begin to slow in the
second half of the year.
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"The critical issue for the market remains the lack
of second hand supply, with our numbers
suggesting that the picture is, if anything, getting
worse. It is too early to conclude whether this
will undermine the positive trend in transactions
volumes, but clearly the absence of properties
to buy will ultimately be a factor in influencing the
ability of people to move homes.
"That said, despite the disappointing trend in
instructions, a net balance of 33% of surveyors
expect to see sales levels increase as we head
into the summer."
www.rics.org