A slowdown in the supply of new homes in April has seen price growth accelerate across the UK, according to the April 2021 RICS Residential Market survey. Meanwhile, a lack of new properties to let has also put pressure on prospective renters.
Looking at new buyer demand, a net balance of +44% of respondents saw enquiries pick up over April (nearly unchanged from the previous +43% in March). For the first time this year respondents reported new buyer demand was positive across every region.
A lack of fresh listings was the biggest concern cited by respondents – with many saying it was not nearly enough to match the interest shown by potential buyers. Respondents reported that new instructions from owners looking to sell-up eased significantly, with the latest net balance of -4%, marking a steep decrease from +21% in the previous month. On top of this, stock levels reported by estate agents dropped, with the average number of properties on their books now at 40, having stood at 46 in December 2020.
Simon Rubinsohn, RICS chief economist, said: “Housing supply, or more pertinently, the shortfall in supply relative to demand is the key theme coming through loud and clear from respondents to the latest RICS survey.”