House prices UK: Nervous buyers putting plans on hold – market slowdown ahead of Brexit

The Royal Institution of Chartered Surveyors (RICS) month-to-month residential survey is seen as one of probably the most credible business stories. As a end result, the model launched this morning is a sobering reminder that till such occasions as certainty round Brexit reached, many buyers are adopting a ‘wait and see’ strategy, as was apparently evident in lots of cities and cities in August. Whilst the summer time months will be barely quieter for gross sales as a result of vacation season, typically the extent of transactions recorded by HMRC and the Land Registry over the previous few years are comparatively constant month on month. This factors to the present political turbulence being the most important contributing issue for faltering transaction numbers in current weeks, extra so than the same old seasonal gradual-down.

Simon Rubinsohn, RICS Chief Economist, commented on in the present day’s knowledge: “It is difficult to get away from the shadow being forged over the housing market by the seemingly by no means-ending Brexit saga.

“Indeed, uncertainty is a theme that respondents proceed to spotlight as a unfavourable affect on sentiment in survey after survey.

“That stated, the important thing RICS exercise indicators have really remained comparatively resilient till now pointing to solely a modest dip in transactions throughout the nation moderately than something extra extreme.”

This is mirrored in areas the place prices and purchaser ranges have been, up till just lately, comparatively regular.

Tony Jamieson, Surveyor with Clarke Gammon Wellers in Guildford, one of the primary Surrey commuter-belt cities, stated he’s at present seeing “less valuations and sales and with the uncertainty in parliament, everything seems to have stalled.”

His view is shared by Richard Nocton, Surveyor with Woolley & Wallis in Marlborough, Wiltshire who added: “The overhanging debacle of Brexit entirely caused by politicians has wreaked havoc with confidence.”

That stated, this doesn’t seem like the case throughout the entire nation. Ben Hudson, of Hudson Moody Surveyors in York reported: “A strong summer market with buyers and sellers getting on with their lives and realizing that life will continue with or without Brexit.”

Chris Charlton, Surveyor with Savills Nottingham agreed, saying that he’s noticed: “Increased exercise with elevated quantity of new candidates and in new properties coming to the market.

“We simply must match the brand new inventory to buyers however understandably the present uncertainty within the financial system will have an effect.”

From a macro perspective, Jeremy Leaf, former RICS residential chairman, is circumspect but nonetheless optimistic and noticed: “On the bottom, now we have seen loads of warning and lots of buyers and sellers sitting on their fingers.

“However, longer-time period buyers of smaller homes have been trying past Brexit and taking on view on possible worth actions.” 

Jeremy concluded: “Other current market surveys bear out this pattern; in different phrases, the market is displaying extra resilience than we would have dared hope.

“Certainly, we’re not discovering buyers and sellers withdrawing from transactions as a result of of worries about an imminent market correction.”

Follow Louisa on Twitter: @louisafletcher

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