A survey carried out by the Royal Institution of Chartered Surveyors (RICS) found that a net balance of 22% of surveyors reported a drop in new instructions in July. This marked the sixth consecutive decline in new instructions reported by surveyors.
The housing stock shortage worsened further in July with the average number of properties for sale handled by a surveyor slipping to a record low on the RICS index.
Respondents in all areas agreed that the lack of properties for sale was causing a ‘vicious cycle’ as the limited choice on offer was deterring would-be movers which was further restricting new instructions.
The continued lack of home supply has led to 41% of RICS valuers stating they expected prices to continue to rise over the next three months. Some 25% of valuers surveyed said they had seen a rise in buyer demand.
Jeremy Blackburn, RICS head of policy, said the government had focused on home ownership schemes but had failed to address the ‘real issue of supply’.
“A coherent and coordinated house building strategy is required across all tenures,” said Blackburn. “This should include measures that will kick start the supply side, such as mapping brownfield, addressing planning restrictions and creating a housing observatory to assess the underlying economic and social drivers of housing and provide the impetus for solutions.”
Data from online estate agent House Simple revealed that properties being listed for sale had slumped in July. It found that the number of listings across the UK dropped 13.2%, with London down almost 15%.
