UK property prices benefit as new listings falter - RICS

The number of new properties coming to market continued to fall in June, industry research showed on Thursday, as demand outstripped faltering supply.

According to the latest residential market survey from the Royal Institution of Chartered Surveyors, the net balance of new property listings was -34% in June, a further decline on May’s -24%. It is the third consecutive fall in the number of new properties coming to market.

The limited supply of new listings helped further support house prices, with a net balance of 83% of respondents reporting an increase, and a balance of 56% expecting prices to continue rising over the next 12 months nationally.

There was, however, a moderation in new enquiries, with the net balance of respondents seeing an increase easing to 14%, compared to a high of 43% in April and 32% in May. RICS attributed the decline to the stamp duty holiday winding down.

RICS chief economist Simon Rubinsohn said: "Respondents to the latest survey are pretty unanimous in once again highlighting the challenge around supply whether in the sales or rental markets.

"While the role of 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."