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No significant price correction in sight as new listings contract further in June

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  • 08/07/2021
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No significant price correction in sight as new listings contract further in June
House prices could hold onto gains made during the market boom this spring, according to results of the Royal Institution of Chartered Surveyors' June survey of members.

 

A net balance of 83 per cent of surveyors reported an increase in residential prices in June, reaching a new high from 82 per cent in May.

Sales per surveyor rose to 23.6 in June, up from 22.9 on May.

The price increase was supported by stronger demand compared to supply. The balance of surveyors reporting new sales instructions went deeper into negative territory in June at minus 34, compared to minus 24 in May.

Meanwhile buyer demand cooled, but remained comfortably positive, at a net balance of 14 for June, down from 29 in May.

A net balance of 56 per cent of surveyors expected prices to increase in the next 12 months.

Market experts suggested the figures showed that current pricing would hold up.

Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Unfortunately, supply is still not increasing fast enough, despite the faster vaccination rollout. We don’t expect a significant correction in prices, more of a softening at least for the next few months as confidence in the economy seems to be more of a priority than worries over the ending of the furlough scheme.”

Tomer Aboody, director of property lender at MT Finance, added: “With a dearth of properties on the market, and demand at its highest level in a long while, quality properties are selling quickly and at increased values. A reduction in instructions will help continue this upwards trend.

“Values for desirable homes, in particular, will continue to rise in the near future, while the government continues to support the market, but more importantly, while money is cheap to borrow. The government needs to assist sellers in putting properties on the market, and this could be by reforming the stamp duty for downsizers.”

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