Despite the sector being allowed to remain open during the third national lockdown, activity from across the country was down in January compared to the bumper end to 2020, according to the Royal Institution of Chartered Surveyors (RICS) monthly market survey.
The change in pace comes ahead of the end of the stamp duty holiday in March.
There was a “noticeable drop off in demand” from new buyers, which ended a seven-month run of increases, the survey showed.
And the first negative reading of new property listings emerged since May last year, while appraisals were weaker than the same period last year.
More surveyors reported a fall in sales switching the trend seen in December.
However, house prices were up with those surveyed overall reporting an increase, except in London where more signalled a fall in values.
In the lettings market, tenant demand increased in the three months to January. But the pace of demand moderated across each of the last two reports, while new landlord instructions fell for a second quarter in succession.
No chance of beating stamp duty deadline
Buyers have ‘written off’ the chance of completing on properties ahead of the stamp duty deadline.
Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “After seven months of frenetic activity, the number of new properties on the market has fallen, the number of new buyers registering is down, and there has been a drop in agreed sales. Estate agents expect things to get worse over the next three months, and then remain flat for the rest of the year.
“Lockdown has locked up an enormous number of sales, as fewer people are keen to wander round anyone else’s home, or let strangers in at the moment. Solicitors, surveyors and council workers are also working from home, which means the already sluggish sales process has slowed to a snail’s pace.
“This means sellers have all but written off the chances of putting a property up for sale today and completing before the stamp duty holiday deadline. Plenty of agents say that now sellers aren’t on the clock, they’re sitting back to see what happens to prices when the pandemic eases.”
Simon Rubinsohn, RICS chief economist, added: “The latest RICS survey suggests that despite attempts to keep the housing market open through the latest lockdown, there has been perhaps an inevitable impact on the level of activity in the sector with both enquiries from potential buyers and new instructions slipping back.”
