"Price momentum firm but demand moderates further"
- Price momentum remains strong at the headline level
- Buyer enquiries edge down for the second consecutive month
- Mixed sales picture emerging across the UK
The RICS Residential Market Survey for August 2014 shows that price momentum remains strong in the main. This is despite agreed sales of properties falling for the first time since September 2012 and the second consecutive decline in new buyer enquiries. The slightly softer demand picture is noticeable across the majority of England.
Consumer nervousness may be coming from speculation over a Bank of England interest rate rise and when that might occur. It is also felt that the Mortgage Market Review (MMR) recommendations introduced in April have resulted in a restriction in finance to certain potential buyers and leading to a lengthening in transaction completion times for others. While lender caution is reported to be the primary cause of these delays, shortages of conveyancers and other skilled staff are also cited as issues.
While buyer enquiries have dipped slightly in recent months, price momentum still remains strong at the national level, significantly this is not been buoyed up by London prices but instead elsewhere across the UK.
While confidence in continued price growth over the next twelve months is good, forecasters have nonetheless decreased their expectations for growth to 2.3% from 2.5% previously.
While expectations for sales growth have calmed a little since the introduction of the MMR, both remain firmly positive. Indeed, it might be that the softening in activity is temporary and could be resolved as everyone adapts to the new lending rules.
In the rental market, tenant demand continued to grow steadily across most areas while new properties available to let decreased very slightly again. Rents are expected to continue edging upwards in the near term and to grow by an average of 2.3% over the coming 12 months.
For more expert advise call Jowett Chartered Surveyors & Estate Agents on 01484 536799. Or arrange for a free valuation to find out how much your Huddersfield home is worth.