UK property survey shows falling sales and frenetic rental market

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Rics reports contrasting picture of buyers holding back and tenants battling in bidding wars

The monthly report by the Royal Institution of Chartered Surveyors paints a contrasting picture of a slower sales market, with both buyers and sellers waiting for the economic outlook to settle, and aRics said its measure of newly agreed sales — calculated as the difference between the percentage of surveyors seeing rises and falls in the past month — fell to a net balance of -44 per cent in July, down from -36 per cent in June and the weakest since the early stages of the coronavirus pandemic.

The slowdown in sales activity reflects a sharp drop in both buyer demand and in the number of homeowners listing properties., with a net balance of 49 per cent expecting them to fall over the year ahead, the same reading as in June. But some suggested the market was more likely to slow than fall, as sellers were not yet willing to accept lower offers.

Richard Franklin, an agent based in Tenbury Wells, Worcestershire, said: “There is a raft of overpriced rural stock with vendors failing to appreciate the market has moved on from WFH and lockdown.” Several respondents to the Rics survey said they were now seeing more landlords exiting the market because of the sharp rise in the cost of buy-to-let mortgages, changes in tax rules and other regulations, and unease over the potential impact of new legislation intended to give tenants more security.

 

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Trend of more tenants in the market with fewer rental properties to continue, RICS saysPain is expected for the renting majority in Britain as the Royal Institution of Chartered Surveyors (RICS) residential market survey breaks new records.
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