UK housing market stagnant - RICS

The housing market was stagnant in April, with national near-term sales expectations pointing to a flat picture over the summer, according to the latest survey from the Royal Institution of Chartered Surveyors.

The balance of surveyors reporting that house prices have risen over the last three months was steady in April at +22 and slightly ahead of expectations for a nudge down to +20.

Meanwhile, the measure of how prices will perform in the next three months fell to +4 from +11, marking the softest reading since July 2016 and suggesting contributors anticipate a slower rate of house price inflation ahead.

Alongside stagnant demand, the latest figures from RICS pointed to agreed sales starting to slip modestly following a number of months of static transactions. The national sales gauge fell back to -9% from -3%, which is the weakest return since the aftermath of the EU referendum.

The survey also found anecdotal evidence that the calling of an early election in June may have created more uncertainty in the market.

RICS chief economist Simon Rubinsohn said: "Although the picture clearly does vary across the country, the bulk of the feedback we are receiving points to a fairly flat summer for both activity and prices. Lack of stock on the market remains a key challenge for the sector with recent and forthcoming tax changes having a material impact on transaction levels, particularly at higher price points. Uncertainty relating to the forthcoming general election is also highlighted by some respondents as a reason for inertia.

“It is noticeable in the April report that the amount of new rental instructions coming through to agents is continuing to edge lower which is not altogether surprising given the changing landscape for buy to let investors. One consequence of this is that rents are expected to continue rising not just in the near term but also further out and at a faster pace than house prices.”