You are here: Home - Mortgages - First Time Buyer - News -

Brexit to blame for housing market activity slump

0
Written by:
14/03/2019
New buyer enquiries, agreed sales and instructions all fell in February according to the latest Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS).

This is the sixth straight month in which all three measures have dropped.

Rics reported that 41 per cent more respondents reported a fall in new buyer enquiries, while 29 per cent of contributors reported a decline in new instructions over the month. This is the eighth consecutive month in which there has been a fall in new listings, with average stock levels now back to record lows.

Rics also questioned surveyors on how they felt Brexit was impacting the market. More than three-quarters of respondents suggested that the uncertainty surrounding leaving the EU was dampening activity in the market, causing buyers and sellers alike to sit tight.

Positive outlook

Despite all of the negativity, Rics noted that the twelve-month outlook from surveyors has remained broadly positive, which it suggests demonstrates the hope that greater clarity regarding the Brexit situation will emerge after March 29.

However, it pointed out that with the government’s proposed withdrawal agreement again being defeated in the House of Commons, irrespective of whether a deal is in place in time before the UK leaves the EU, the impact of further uncertainty will be felt across all tenures of the housing market.

Simon Rubinsohn, chief economist at RICS, said that with little sign that Brexit will be resolved any time soon, it could prove to be a “challenging” spring for both the housing market and the wider economy.

He continued: “It is clear from professionals working in the market that this environment requires a greater degree of realism from those looking to move. A reluctance from some vendors to acknowledge the shift in the balance of power in the market will compound the difficulty in executing transactions.”

Hew Edgar, head of policy (interim) at Rics, added that even with Brexit taken out of the equation there are “clear issues” that need to be tackled, including the lack of supply, a “disputable” stamp duty framework and a “faltering private rental sector (PRS) system”.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

  • Are you planning to make a last-minute investment into your ISA or SIPP during this tax year? Here are five tips to… https://t.co/lGjHix7F7y
  • Forget a delay, more than a third of private investors favour a no-deal Brexit - https://t.co/SW9dXjCK2C #Brexit
  • Have you ever tried to save money but unintentionally ended up spending more in the process? Here's how to avoid th… https://t.co/ORmTNOVmV3

Read previous post:
Fresh competition for high street banks as RCI secures licence

French bank RCI has secured a UK banking licence, meaning customers’ deposits are now protected by the UK’s Financial Services...

Close