A prominent analyst says her reading of the latest Royal Institution of Chartered Surveyors market snapshot makes her believe more house price falls are on the way.
Sarah Coles, head of personal finance at Hargreaves Lansdown, says: “August is always quiet, but this year it was deathly. Higher mortgage rates chased buyers out of the market, and those who remained sat on their hands in the hope that house prices would keep dropping. They’re likely to get what they wish for.”
The latest RICS snapshot says that house price falls accelerated in August with their most negative reading since 2009. Buyer demand and sales fell sharply too.
Sales saw their weakest reading since the first tough few months of the pandemic and each sale is now typically taking 20 weeks from listing to completion on average – up from 16 weeks in late 2021.
Meanwhile demand for rental properties powers ahead of supply yet again, leading Coles to anticipate that more sales will struggle - an ideal opportunity for landlords to avail of lower prices.
She says: “Prices are falling, but not fast enough to convince buyers to take the plunge. Those who are prepared to make an offer are driving a hard bargain. Zoopla figures in June showed 42 per cent were negotiating a price cut of over five per cent - the biggest proportion since 2018.
”Sellers, meanwhile, are refusing to budge as far as they need to in order to secure a sale. It means fewer sales, and it’s taking much longer for property to shift.
“Sluggish sales have a knock-on effect, because it gets more difficult to put a chain together. Even when they succeed, it takes so long that buyers get cold feet about paying a price they offered months ago. They want to pull out or renegotiate, and as a result, it’s getting harder to keep chains intact.
“There is some hope that the usual pick up in September will make a difference. However, with prices still high and rates only coming down very slowly, we may have to wait longer for buyer enthusiasm to return. The question is how much damage will be done to house prices in the interim.”
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It is not very likely that many landlords are going to expand their portfolios when they will not have control of their properties anymore due to the anti-landlord legislation going through Parliament.
Exactly!
Seller’s are thinking it’s still 2021 and buyers are looking forward to where prices will be in 2025 🆘🆘
Potential buyers who must be blind deaf and completely ignorant of the rental market.
I think a new generation of LLs will be looking to pick up properties. Those of us who believe the game becomes untenable with the RRB & EPC C may leave but the PRS will continue to exist & a new generation of LLs can see large rents rises looming. I have recently accepted an offer from a young LL building his portfolio!
Personally, I think that some form of rent control will be introduced possibly linked to the local housing allowance rate.
That is a fair point Tricia, what really gets me is one property I have taken back was completely trashed. The fool who did not pay for months left and he was being supported by the council, he was there for a few years and I let him have it really cheap (500pcm). Two up two down nice place.
This house though now we have refurbed it is ready for rent, I have had the council and corporates offering me 900pcm to lease it to them including maintenance for 3-5years...?!? So the council support an idiot who I got rid of and now want to rent it off me for nearly double, someone somewhere should be accountable for this ineptitude!
The young and the foolish, I hope the property was an EPC C already 😱 or will become one after spending £29.95 at B&Q 👌🏻
So pleased Peter that you may have some possible and better options for your house! Make sure you check the small print associated with the offers that you now have!
And well done to Tricia for securing an offer from a buyer!
Opportunity knocks for landlords??? 😂 😂 😂 😂 😂 😂 😂 👍. That's a good one!! 😂 😂. Who in their right mind would want to put their hard earned dosh into a business ehere all control is taken away from them?
Like the punter’s of the Wild West 🐎 when they purchased the new wonder liquid from the 🐍 Snake Oil salesmen …… there is always one 😂
Oh no! It's almost as if basing your income on hoarding and overcharging for what is a basic human right wasn't a good idea. Couldn't possibly have seen that coming 😂
So James it's a '' basic human right to be provided for free is that what you are saying ??
James. It’s not a basic human for me to house you, would you house me ? I thought not if I hadn’t worked all the hours under the Sun and saved all I could I would be another Charity case blaming others for what they have.
P S, Incidentally another Tower Block fire in Kilburn
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