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House prices rise but expectations remain subdued

House prices in Wales edged upwards during September, the latest RICS (Royal Institution of Chartered Surveyors) Residential Market Survey says, but sales activity and the outlook for the market are more subdued.

Welsh surveyors reported rising prices in the September survey (a net balance of +19% of respondents said that prices increased), but respondents are less positive about the three months ahead, with a flat picture for both sales and price expectations.
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A key factor in the market in Wales is the constrained supply, with Welsh surveyors reporting a fall in the number of properties coming onto the market for the seventh consecutive month.

RICS Residential Spokesperson for Wales, and Director of Kelvin Francis, Cardiff, Tony Filice FRICS, says:

We see evidence of some nervousness in the market in relation to the political climate, but in our experience, activity is still steady. Sales that are being agreed are generally being agreed within 5% of their asking prices.”

John Caines, FRICS of Payton Jewell Caines said: “The supply side is a little better than it was but still has a long way to go.”

The main findings of the latest survey were as follows:

  • The headline price balance for Wales was +19% in the latest survey, meaning that 19% more surveyors said that prices rose in the past three months than those who said they fell.
  • The price expectations balance, at -1%, suggests that prices will be flat in the three months ahead.
  • The sales expectations balance was at +2%, again suggesting a flat short-term outlook.
  • The new instructions to sell balance was at -3%, suggesting that the number of new properties coming onto the market was lower in July.
  • Meanwhile, the newly agreed sales balance was at 10% suggesting that the number of newly agree sales increased.
  • New buyer enquiries also declined, according to the net balance (-4%) of respondents in Wales.
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