"For the time being at least, forward looking metrics suggest little prospect of the tide turning to any meaningful extent."
RICS says that "for the time being at least, forward looking metrics suggest little prospect of the tide turning to any meaningful extent".
Respondents predict virtually no change in house prices over the near term, the lowest return for this indicator since February 2013. London continues to exhibit the weakest feedback, with a net balance of -47% of respondents citing further price declines.
The price series also remained negative in the South East, East Anglia and the North East, but to a lesser extent than in the capital.
However prices continue to drift higher across all other parts of the UK, with Northern Ireland, Wales and the East Midlands seeing the strongest pick-up.
At the national level, the near term outlook for prices remains flat, with three month expectations stuck in relatively neutral territory since November last year.
Although respondents anticipate that prices will be higher in a year’s time, particularly the North West, Wales and Scotland. By way of contrast, London remains the only region in which contributors envisage prices falling over this timeframe.
Alongside this, demand remains subdued, as new buyer enquires reportedly deteriorated for a twelfth month in succession. Furthermore, only two of the twelve regions/countries covered by the survey saw an increase in new buyer demand over the month.
One factor likely proving a significant impediment to demand, parallel to ongoing concerns over affordability, is the lack of new instructions coming onto the market. The flow of fresh sales listings slowed again in March, marking the seventh consecutive month of negative readings for this metric.
With a lack of choice hindering demand, sales continued to fall, extending a run of negative returns stretching back to February 2017.
Respondents in virtually all parts of the UK noted either a flat or downward sales trend during March.
Looking ahead, near term sales expectations remain marginally positive across the UK as a whole, but still point to minimal momentum being gained during the coming three months.
In another sign of particularly difficult market conditions within London, 55% of respondents noted a rise in the number of properties being withdrawn from sale when compared with a year ago.
Steve Seal, director of sales and marketing at Bluestone Mortgages, commented: “Following past trends, today’s pessimism is unsurprising. However, there is plenty to be cheery about. Consumer appetite remains strong with levels of re-mortgaging hitting a nine year high last month and lending to first time buyers up 7% year-on-year.
“There is no denying, though, that an imbalance between supply and demand is contributing to heightened concerns of affordability for all those across the property ladder. The cost of living is increasing, and for those who may feel at the tipping point and unable to step onto the property ladder, as an industry we need to reassure these borrowers that they do still have a right of access to lending and that pathways to homeownership are available.”
