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Prices rising but stocks low: RICS survey

The latest residential market survey from RICS shows house prices are still rising outside the capital. 

More than half of those surveyed by the group say that property prices in London are falling. Sentiment is also negative in the south east, north and east Anglia. 

But figure shows prices continue to climb in the north west, south west, Scotland and Northern Ireland. 

RICS chief economist Simon Rubinsohn says: “The latest results suggest the greatest pressure continues to be felt in the prime central London market. The numbers for most other parts of the country point to a rather more resilient marketplace.”  

Experts are largely expecting prices to remain subdued over the next three months.  

Buyer enquiries and transaction levels are broadly flat, and the survey shows a slight fall in new instructions.  

A main driver of the market in the coming months is likely to be landlords. Some 61 per cent of those surveyed think more landlords will exit the market over the coming year. More than half believe there will be a net reduction in the number of landlords over the next three years.  

RICS global property standards director Paul Bagust says: “The number of landlords exiting the market due to recent policy changes is concerning, especially given house price rises. A functioning private rented sector is crucial to a healthy housing market.” 

Experts also expect a supply and demand mismatch to continue to drive prices. Rental growth is expected to outpace house price growth over the next five years.  

Mortgage Advice Bureau head of lending Brian Murphy says: “The report is sentiment based rather than reporting on hard data, which provides us with a good view from the engine room of how surveyors perceive the market.

“It’s interesting to note that significant numbers of landlords are expected to exit the market. If this happens it could be change in dynamic required to get more homeowners moving.”

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