Yorkshire and Humber saw housing activity fall in December

Yorkshire and Humber saw a drop in the number of house sales in December, according to the December 2016 RICS (Royal Institution of Chartered Surveyors) UK Residential Market Survey.

Only 7% more chartered surveyors in the region saw a rise in house sales last month, and figures for projected sales over the next three months across the UK also saw a noticeable slow down with only 7% more respondents

Supporting the predicted slow start to 2017, new instructions to sell also failed to see an increase, with only 3% of agents in Yorkshire and Humber reporting a rise in homes coming on to the market for sale (down from 12% the previous month).

Respondents to the survey also continue to highlight low stock levels as a key concern and a lack of choice for would-be buyers is having an impact on the housing market in Yorkshire and Humber.

However, in the longer term, the twelve month sales outlook is positive with 57% more contributors in the region expecting sales to rise over the year ahead.

Looking at the continued growth in house prices, 32% more chartered surveyors in Yorkshire and Humber saw a rise rather than fall in prices in December, down slightly from 34% in November.

Over the next 12 months, 32% more respondents in Yorkshire and Humber suggest that prices will increase further.

In Yorkshire and Humber’s lettings market, tenant demand increased marginally, with 27% of agents seeing a rise in enquiries for rental properties (up from 24% in November) while new landlord instructions were more or less flat.

This demand is consistently outpacing supply and causing rents to increase with 45% of respondents expecting rents to rise further over the coming three months. This trend is expected to continue with respondents projecting rental growth to average close to 5%, per annum, over the next five years.

Chris Clubley FRICS of Clubleys in York said: “The market has remained stable throughout the turbulent political situation that Brexit has caused. Stock remains low, however, stability has increased confidence and this combined with a spring market should increase stock levels.”

Alex J Mcneil MRICS of Bramleys in Huddersfield added: “It is predicted that there will be a lower volume of sales during 2017 although values will be maintained due to a lack of stock and the positive underlying demand.”

Simon Rubinsohn, RICS Chief Economist, concluded: “A familiar story relating to supply continues to drive both the sales and lettings markets impacting on activity, prices and rents.

“The eagerly awaited housing white paper should help to create a more positive framework for new build delivery but with the best will in the world, it is going to take time before the resulting uplift in the development pipeline begins to impact on the opportunities for either homebuyers or tenants.

“Meanwhile, the latest RICS survey provides further evidence that both price and rent pressures are continuing to spread from the more highly valued to more modestly valued parts of the market for good or ill.”

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