According to new data released by the Royal Institute of Chartered Surveyors, there was a continued decline in homes for sale last month.
According to the report, a lack of clear instructions in recent months is preventing activity on the property market.
In spite of a dearth in homes for sale, prices rose last month. Buyer inquiries rose, while sales dropped.
The average number of properties that estate agents have on hand is now 37, compared to 42 in January last year, according to the Rics, who told This is Money.
Problem: November saw a drop in the number homes that are up for purchase, Rics reported
Simon Rubinsohn is the chief economist of the Rics. He stated that the issue supply has been given more attention in response to the RICS residential market survey.
“Critically, this theme is strong both in the most recent set of contributor comments and data about new instructions as well as declines inventory on agents books.
“Unless this trend changes soon, transaction volumes may plateau in 2022. Limited choice will prove more important than any shifts in the interest rates environment for new buyers.
Oliver Miles is the managing director at Oliver Miles estate agents, Swanage. He said that sellers are enjoying themselves right now.
“There are very few properties on the market which drives up the prices. However, this could slow down towards Christmas and the New Year.
A shortage: In recent years, the number of properties that are on the books of estate agents has fallen.
Lack of stock leads to increased competition from potential buyers. This is leading to higher house prices.
A net balance of 71 per cent of experts surveyed said they saw property prices increase last month, which is identical to October’s survey and previous feedback points to house price inflation remaining consistent over the past four months, the Rics said.
“Looking forward, prices will continue to drift higher on the national level. A net balance of +66% contributors anticipates that prices will rise over the next 12 months.”
The Rics reported that property prices rose in Wales and the North West of England last month. According to the Rics, London prices still appear to be behind the rest of England ‘to some degree.
Predictions by the Rics. The Rics expects that property prices will continue to rise next year.
Mr Rubinsohn said the ‘imbalance’ between supply and demand was ‘likely to continue to be a key factor supporting prices and indeed, even if the cost of mortgage finance does begin to edge up, it is likely that house prices will continue to move higher through the coming year, albeit at a somewhat slower pace than over the past twelve months.’
The Bank of England faces pressure from inflationists to raise interest rates. They are at an all-time low of 0.1%.
According to experts, interest rates might rise in the next month. This could have an adverse effect on potential buyers of property or on those who are on variable rate mortgage loans.
