By Eric King
A survey from the Royal Institution of Chartered Surveyors released today shows that UK house prices slumped to a net balance of minus 32 per cent in May, marking the lowest prices since 2010.
The instructions to buyers and sellers to delay any sales and cancel viewings impacted the housing market throughout the lockdown period.
Rics believes house prices will gain momentum over the next 12 months, as new buyer enquiries recovered from a record low of minus 94 per cent in April to minus 5 per cent last month. Near-term sales expectations are now broadly flat, Rics said.
Ross Counsell, director at Good Move said: “Today’s results point to a slight improvement in the outlook for sales over the coming 12 months.”
“However, we must not forget the impact that the current pandemic has had on both buyers and sellers. Today, people are a lot more cautious with their finances due to a decrease in home income caused by loss of work and other factors.”
House sales put on hold during the lockdown were now largely going through.
“But it remains to be seen how sustained this improvement will prove,” he added, noting caution about a potential jump in unemployment when the government’s jobs retention programme expires at the end of October.
Property website Zoopla yesterday said that house sales in England had recovered since the government allowed estate agents to reopen last month.
Google Trends data compounded signs that demand has rebounded, with online searches for the three most popular housing websites — Rightmove, Zoopla and Onthemarket — last month holding on to 76 per cent of January’s level.
“May’s Rics survey provides more evidence that housing market activity recovered quickly after the government permitted home-seekers to view properties in person and surveyors to inspect properties again,” said Samuel Tombs, chief UK economist at Pantheon Macroeconomics.
However, Tombs added he “remained concerned” that housing demand will “peter out later this year, once some of the pent-up demand has faded”.