RICS warns of reduced demand for housing in 2018
With lower levels of borrowing, combined with reduced activity within the property market, sellers are being warned that the days of high asking prices may be numbered.
As the UK heads towards what is usually considered a period of heightened activity within the property market, vendors who are looking for a fast house sale are being urged to temper their expectations as the Royal Institute of Chartered Surveyors warn that the demand for housing has now fallen for 12 months in a row.
While some experts have been quick to blame the national insecurity over the UK’s decision to leave the EU, the majority believe that the fall in buyer demand simply stems from the ever-widening gulf between wages and house prices, and that this is simply the market finding a way to stabilise itself.
For years, house prices have risen at a rate that has left a large percentage of younger people stuck in the rental trap – leading to a dramatic drop in the number of potential buyers actively looking to purchase. This fall in interest has led a large number of estate agents nationwide to face the prospect of bankruptcy unless they can successfully encourage vendors to lower their asking prices to ensure a sale.
It isn’t, however, just high street agents who are noticing the reduction in market activity, with a 29% fall in year-on-year lending reported by banks and building societies in the first quarter of 2018. While the government are keen to dispel rumours of a weakening economy, the Bank of England have noted that this is the largest slump since records began in 2007.
For buyers, this could potentially be great news as we may begin to see sold house prices fall in value, ultimately nurturing higher levels of activity within the market. For vendors who need to sell their house in a limited time period, however, the outlook is less encouraging.
The majority of market activity in the UK over the last several decades has been as a result of families upsizing, or individuals moving to pastures new in pursuit of higher earnings. But with the prices currently being demanded by sellers in more attractive areas for employment, analysts believe that market will need to adapt or face coming to a standstill.
While many homeowners are happy to wait until the future of the economy is more transparent, sellers who need a quick house sale can always make the use of house buying companies who are happy to buy any house – regardless of condition or location.
Hoping to sell your house in a short time-frame? Why not ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.