The UK property market is battling against dwindling buyer demand, falling house prices, and decreasing agreed sales, according to the April 2023 RICS UK Residential Survey.
The report shows a decrease in buyer demand for the 12th consecutive month, with the number of agreed sales and house prices also on a downward trend. Although agreed sales fell slightly less than the previous month, the forecast for sales over the coming months remains negative. However, the 12-month view provides a glimmer of optimism, predicting a slightly positive trend.
The supply side of the market also appears to be struggling, with fewer properties entering the market and fewer appraisals taking place. The average estate agent has 36 properties on their books, slightly up from previous months but still near historic lows, indicating that sluggish supply conditions will persist.
The rental market continues to face its own challenges, with the number of tenants rising and landlords falling yet again.
Commenting on the report, Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The green shoots of optimism in the property market risk being crushed by cruel reality. Demand has now fallen every month for the past year, and with sales dwindling and house prices dropping, it’s proving more difficult to shift properties. It’s taking almost 20 weeks from first listing to final completion, as cautious buyers guard against hasty decisions.”
Coles noted that these figures starkly contrasted with those from Zoopla, which reported a sales pickup around Easter. However, she also acknowledged some bright spots in the market, such as the slight improvement in agreed sales and gradually improving agent expectations.
