Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

UK surveyors expect weakest home sales since at least 2012 - RICS

Economy Sep 08, 2022 00:10
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A person walks with a dog in front of a row of residential housing in south London, Britain, August 6, 2021. REUTERS/Henry Nicholls

By David Milliken

LONDON (Reuters) - The number of homes sold in Britain over the next 12 months is set to fall by the most in at least a decade, as fears of recession and rising interest rates hurt the market, the Royal Institution of Chartered Surveyors (RICS) said on Thursday.

The industry body said its members also seen the biggest fall in enquiries from new buyers since April 2020, at the start of the COVID pandemic, while prices were rising at the slowest pace since January 2021 and were expected to level off.

"Concerns over the economic backdrop and rising interest rates continue to take their toll on market momentum, with strong activity early in the year now giving way to a more subdued picture," RICS economist Tarrant Parsons said.

Britain, like many Western economies, saw a surge in house prices during the COVID-19 pandemic as people sought more spacious accommodation as they spent more time at home.

Despite the end of a tax break on home purchases, rising interest rates and the fastest consumer price inflation in 40 years, the Britain's main measures of house prices remain at least 10% up on a year ago.

But RICS said its survey balance for sales expectations over the next 12 months - which measures the difference between the percentage of surveyors expecting a rise and those expecting a fall - sank to -45 in August from -36 in July.

This was the lowest reading since this question was first asked in 2012.

RICS's house price balance dropped to +53 in August from a downwardly revised +62 in July, well below economists' forecasts in a Reuters poll for it hold broadly steady and its lowest since January 2021.

A lack of homes for sale was keeping prices up for now, Parsons said. The same measure of house prices for the next 12 months had dropped to just +3.

A Reuters poll last week showed economists forecast house prices would rise just 1% next year, down from an estimated 7% for 2022.

UK surveyors expect weakest home sales since at least 2012 - RICS
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email