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Press release

8 JUL 2021

New listings running low as solid demand drives up UK house prices

RICS UK Residential Market Survey, June 2021

  • Faltering supply continues to underpin house prices
  • Wales, Yorkshire & Humber, and Northern Ireland all see sharp increases in house prices
  • Growth in new buyer enquiries softens slightly as Stamp Duty holiday ends

The housing market suffered from a third consecutive fall in the number of new properties coming onto the market, this according to the latest Residential Market survey published by the Royal Institution of Chartered Surveyors today (Thursday 8 July).

Surveyors across the UK reported a decrease in new property listings, with the net balance standing at -34% in June, which is a further deterioration from -24% returned in May.

The rate of new enquiries from budding house buyers appears to be moderating – with the net balance of respondents seeing an increase in June easing to +14%, down from +43% back in April. This is happening across all regions of the UK, coinciding with the Stamp Duty holiday beginning to taper off.

With demand increasing and supply continuing to falter, it’s no surprise this has had an upward effect on house prices, with a net balance of +83% of respondents reporting an increase. All parts of the UK continued to report robust increases in house prices, particularly in Yorkshire & the Humber, Northern Ireland and Wales.

Looking ahead, a net balance of +56% respondents anticipated that prices will continue to increase over the next twelve months at the national level.

In the rental market tenant demand accelerated over the month of June, with a net balance of +60% noting a rise (up from +48% in May). In contrast the shortfall in new landlord instructions intensified further, as a net balance of -32% said they had seen a decline. Respondents anticipated rental growth will grow slightly as a result, with projections suggesting +3% over the coming twelve months – including London, which has seen a turnaround since the negative rental assessment earlier in the year.

Simon Rubinsohn, RICS Chief Economist, said:

“Respondents to the latest RICS survey are pretty unanimous in once again highlighting the challenge around supply whether in the sales or rental markets. Reflecting this, the feedback is consistent with further increases in both prices and rents over the coming year.

“While the role the credit channel and the extended period of ultra-low interest rates can’t be ignored, it is critical the government is able to create the conditions to support higher levels of new build development to address the worsening affordability challenge.

“But it is not just a numbers game with an uplift in delivery needed across all tenures including both social and private rent alongside home ownership.”

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