British house prices have shown improvement for the first time since July. However, prices are expected to fall in the coming months as Brexit concerns keep rising and have a say in the property market according to a recent survey.
According to the Royal Institution for Chartered Surveyors (RICS), the monthly house price balance went up to -24 in March from February’s -27, which incidentally was the lowest reading since 2011. A recent Reuters’ poll points to further fall to -30.
Brexit still remains a drag on market activity with evidence showing that potential buyers are reluctant to make a big investment in property due to the heightened sense of uncertainty according to Simon Rubinsohn, the Chief Economist at RICS.
Since the June 2016 referendum, Britain’s’ housing market has been on a decline. However, a few recent indicators show that there is a chance it might bottom out.
RICS also said that surveyors seem to be more positive about the long term outlook, although the number of homes for sale seemed to be low for the fourth consecutive month.
According to Rubinsohn, the latest trend for residential flats have also flatlined with developers remaining cautious. This has reduced prospects for a future increase in house building to ease up.
An industry survey has established that house prices are expected to fall for the next 6 months in Britain. Other official data has shown that rent has been falling, with tenants paying about £757 a month, which is lower than £772 from a year ago. This pattern of decline has been consistent since the June 2016 referendum.
The survey showed that the average time to sell a property remained the same at 19 weeks. However, this is the highest since RIS has been recording data since 2017. The survey also showed that selling a home in the south-east of England seemed to take the longest time at 21.5 weeks on average.
The declining market has deterred most potential sellers from putting up their homes for sale. The surveyors’ body indicates whether the prices are heading in a positive or negative direction. Most of the surveyors across the country regard Brexit as the major factor behind the declining prices. According to Steve Gadsby, of Gadsby Nichols in Derby, Brexit is the major reason behind the market decline. He also said that many purchasers are waiting for the Brexit outcome before deciding whether to put their homes or other properties on the market.