Confidence in UK property market starts to dip ahead of election
Confidence in the UK housing market is starting to dip despite signs of improvements in recent months, according to the latest property surveyor report from the Royal Institution of Chartered Surveyors (RICS).
A net balance of eight per cent of property professionals saw home buyer demand falling rather than rising in May, marking the weakest reading since November 2023.
Buyer demand was weakest in the South East and South West of England, the report said.
Respondents to the survey also reported a fall in the number of sales agreed during May, although it is expected that sales volumes will rise modestly over the coming three months.
Despite this, the outlook for the next twelve months remains relatively upbeat, with 43 per cent of survey participants anticipating an uplift in sales activity, rising from 33 per cent in April.
Justin Young, chief executive of RICS, said: “Despite an improving overall outlook, today’s data reveals that confidence in the housing market is beginning to dip – just as parties launch their manifestos.”
The report also showed demand continued to outstrip supply across the UK’s rental market.
A net balance of 35 per cent of professionals saw tenant demand rise rather than fall.
RICS said the growing gap between supply and demand for lettings “indicates that rental prices will continue to rise for the foreseeable future, albeit at a slower pace than previously”.
Labour, which is currently leading the polls, has promised to reform planning rules to build 1.5m more homes. Keir Starmer’s party also said it would give a “first dibs” to locals to end developments being sold off to international investors.
Meanwhile, the Conservatives have committed to building 1.6m homes over the next parliament. The pledge comes despite the party failing to deliver on their promise of delivering 300,000 homes annually in the last four years.