RICS: these are the results of the March residential survey.
This sales momentum will continue at least for the short term.
The extension of the stamp duty holidays sent the property sales market up in March and the renewed momentum seems likely to continue in the near term. These are the results of the latest RICS residential market survey.
The survey returned the strongest results in some months and respondents anticipated a busy three months for the market.
In fact, in the month agreed sales reached the strongest level since August 2020, while inquiries from new buyers reached a maximum last seen in September 2020.
The report said: “The March 2021 RICS UK residential survey results show that sales market activity accelerated dramatically during the month, with indicators on inquiries, sales, and new instructions notably improved compared to last time.”
We are in a good moment for the market.
Nigel Purves, CEO of Wayhome commented: “Demand clearly continued to outpace supply in March, with a net balance of + 59% of respondents citing an increase in home prices across the country. New buyer inquiries increased 42%, the strongest performance since September 2020, and sales also increased last month. This helped create a steady pace of activity as we approached the beginning of the traditionally busiest spring season.”
“While we are seeing renewed trust among many buyers and sellers, this is sadly not the case for a large proportion of aspiring homeowners across the UK. Even with the extension of the Stamp Duty for three more months that encourages hopeful home buyers, there are many who find themselves overlooked and ignored because their household income does not meet the criteria of a mortgage lender. This is despite the fact that they already have a deposit saved and can pay the equivalent of the mortgage repayments on rent each month. More needs to be done to level the playing field and provide people with alternative routes to homeownership.”
Rich Horner, Head of Individual Protection at MetLife, comments: “Thanks to the Chancellor’s extension of the stamp duty holiday and the introduction of the 95% mortgage scheme, it has been another positive month for the housing industry. One that could have suffered severely if the stamp duty holiday ended abruptly.”
“In the months to come, we should continue to see an increase in homeownership, particularly as the new 95% mortgage scheme will make homeownership a reality for more first-time buyers. We are also seeing more lenders offering their own competitive mortgage deals. Despite the success of the measures, potential buyers should be wary of its affordability and ensure that they do not live beyond their means, especially since houses up to £ 600,000 are eligible under the scheme. If this were to happen, house prices could continue to inflate, and since the scheme is accessible to all types of buyers, first-time buyers could remain excluded from the market entirely.”
“As home buyers rush to act before the new deadline, they need to make sure they have adequate protection in case the worst happens. Nobody wants to make their dream of buying a home come true just because of the unthinkable of getting sick or having an accident. Talking to an advisor can be very helpful if you are unsure or need advice.”
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