Tuesday, 20 August 2019

Brexit extension helps stabilise the market

Brexit extension helps stabilise the market

THE outright decline in the interest of new buyers in purchasing a home showed signs of stabilising in May, in the wake of the decision to extend the deadline for withdrawal from the EU till the end of October.

And in the London property market, the negative trends in agreed sales, prices and new instructions all showed some signs of easing, according to the Royal Institute of Chartered Surveyors’ latest residential market survey.

A RICS spokesman said: “Despite the less negative sentiment in the market there is little anticipation this will be reflected in an increase in transactions any time soon.

“Sales expectations over the next three months remain downbeat, with a net balance of minus 35, and although expectations for the year ahead are more positive, with a net balance of plus six, only marginal improvement is expected.

“Lack of stock is still an issue in the market, with stock on agents’ books hitting a new national low this month.

“Moreover, even with the new instructions to sell the least negative in London since October last year, the feedback on appraisals being conducted at the present time provides little grounds for concluding that supply is about to pick up.”

RICS chief economist Simon Rubinsohn added: “Some comfort can be drawn from the results of the latest survey as it suggests that the housing market in aggregate may be steadying.

“However much of the anecdotal insight provided by respondents is still quite cautious, reflecting concerns about both the underlying political and economic climate.

“Another significant point is that there continues to be considerable emphasis on the need for realistic pricing on the part of vendors, which while not a new story is indicative of the ongoing challenges.”

Property

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