New data from a bi-monthly survey by e.surv, collected from over 500 valuers and surveyors, suggests significant changes in the UK housing market.
Among the key findings are longer sales cycles for homes, new buyer-focused incentives for new builds, and a reassessment of investment strategies by buy-to-let landlords.
The survey found that homes are taking longer to sell and asking prices at the top of the market are under pressure.
Additionally, new build incentives are increasingly focusing on aiding buyers with costs like deposit contributions, legal fees, and stamp duty payments.
In the rental sector, a supply-demand imbalance continues to push up rental values. Remarkably, 44% of London-based surveyors reported homes being let above the initial asking rent.
With pressures mounting on landlords, half of the survey respondents saw an increase in privately rented homes entering the sales market.
For those rented homes put up for sale, 90% were typically being sold to individuals intending to occupy them as their primary residence.
Rob Owens, head of research at e.surv, said: “The buy-to-let market is facing a number of challenges at present, with rising mortgage rates the biggest concern for landlords. This is leading to a decline in landlords participating in the sales market and an increase in landlords looking to rationalise their portfolios or exit entirely.”
These shifts come despite the Government recently scrapping plans for new minimum energy standards. Mortgage costs remain the primary concern for landlords, with 79% of surveyors noting a decline in landlords planning to buy new investment properties.
Owens added: “These challenges could have a significant impact on the UK housing market, reducing the supply of rental properties and pushing up rents for tenants. It is important that the Government takes steps to support the buy-to-let market and ensure that it remains a viable investment option for landlords.”
