How local property markets have performed in 201908/12/19
Average house prices in the UK have remained unchanged over the last three months, according to research from Nationwide.
However, this apparent stability can be misleading when it is judged against activity levels. Surveyors who were consulted for the September RICS survey say that these have dramatically reduced. This is likely to be linked to ‘economic and political uncertainty’ over BREXIT. With that now delayed until the end of January 2020, the uncertainty shows no signs of improvement. The survey concludes that ‘the market seems unlikely to gain impetus over the next three months, though sentiment for a year ahead is more resilient’.
Here at Forge we have seen evidence that property is selling, so long as it has been priced correctly. However, we have certainly seen a reduction of property coming to the market, which seems to be in line with the broad national trend. Looking at the rental market, this seems largely unchanged, with continuing strong demand for property and plenty coming to the market.
The H2 2018 RICS/RAU Rural Land Market Survey, which is the leading survey on demand, supply and prices in the farmland market, points to a somewhat cautious near term outlook for farmland prices, alongside softening demand in both residential and commercial components. That said, anecdotal evidence suggests that the market is becoming polarised between high quality land in good locations and lower grade farmland, with the former still sought after whilst conditions across the latter are proving to be more challenging. Brexit uncertainty is also cited to be negatively impacting investor sentiment too.