New buyer demand has weakened again in October, marking three successive reports in which demand in the UK property market has deteriorated.
Across eleven of the twelve UK regions property sales were reported to be either flat, or negative, during October.
The latest RICS UK Residential Market Survey blames the decline on “Affordability pressures, political uncertainty and a lack of fresh stock coming onto the market”.
North West England, Northern Ireland and Scotland
Whilst house prices are falling across most parts of the UK, North West England, Northern Ireland and Scotland are recording house price rises, which are expected to continue over the next year.
Decline in New Instructions
Almost all UK regions have seen a monthly decline in new property instructions, with average stock levels remaining very close to an all-time low.
According to the latest RICS survey, there appears to be little chance of any meaningful turnaround in the near future.
Properties over £1million
Properties priced over £1 million are recording sale prices below the asking price according to three quarters of respondents, with 14% reporting sale prices more than 10% below the initial asking price.
Properties up to £500,000 are, on average, reporting sale prices at least level with asking prices. However, 34% of respondent stated that sales prices were coming in up to 5% below asking price.
The UK Residential Market Survey is used by the government, the Bank of England and other key institutions, including the IMF, as an indicator of current and future conditions in UK residential sales and lettings.