The April 2019 RICS UK Residential Survey results see little change from recent months, however, new instructions have seen a further drop with the poorest reading going back to June 2016.
The lack of new houses coming on to the market, presenting buyers with limited choice, is a key factor in dropping activity, with headline indicators on demand, supply and prices all still downbeat. Brexit uncertainty also remains a constraint, meaning little change in momentum is anticipated near term but further out expectations are at least slightly more positive.
In the lettings market, tenant demand continues to climb slowly while landlord instructions continue to dwindle, extending a run of successive quarterly declines dating back to the middle of 2016. This is already the longest uninterrupted sequence of falling landlord instructions since the series started in 1998, and anecdotal evidence signals little chance of a turnaround. Comments from contributors also suggest that the upcoming lettings fee ban and the proposed abolishment of section 21 could lead to more landlords exiting the market (coming on top of tax changes within the sector over recent years).
Either way, rents are projected to rise to by around 2% at the national level over the coming twelve months, with growth seen accelerating to average 3% per annum over the next five years, according to RICS.
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