Though uncertainty over Brexit has slowed down the momentum in the UK residential property market, sales and lettings outlook is positive for 2019.
A survey conducted by the Royal Institution of Chartered Surveyors (RICS) has predicted a dull three months for property sales. However, the outlook for the next 12 months is stronger. “A headline net balance of +16% of contributors are expecting sales to rise,” RICS said in its Residential Market Survey.
The number of new properties being listed on the sales market has deteriorated, with the net balance reading of -25 per cent. This will invariably contribute to the demand for properties are more prospective buyers are entering the market.
Across the lettings market, tenant demand rose modestly in the three months to January (seasonally adjusted series). It has now picked pace in each of the last three quarters. RICS survey respondents expect rents to rise by roughly 2 per cent over the next 12 months, and at the five-year horizon, averaging 3 per cent each year.
Despite the uncertainty surrounding Brexit deal, the property market has remained positive. The house price growth and rental value appreciation have not entered the negative territory, as predicted by industry observers two years ago. The strong fundamentals of the UK property are holding the market steady for investors.
Simon Rubinsohn, RICS chief economist, said: “Resolution of the Brexit negotiations is widely seen as critical to encouraging potential buyers back into the market, although whether that will be sufficient in London and parts of the South East where affordability remains stretched and the tax changes are most penal remains to be seen."