What’s threatening the market? Brexit and shortage of supply

The latest RICS survey has one key message - 77 per cent of surveyors participating in the study say Brexit uncertainty is the largest challenge facing the market.

The survey says all key indicators - enquiries, sales and new instructions - remain subdued, and only eight per cent of respondents say Brexit is having no impact at all.

Demand, as measured by RICS members, has fallen for the seventh consecutive month with the pace of decline accelerating. 

“Another crucial factor holding back demand appears to be the lack of stock available on the market, with respondents highlighting this as the second most significant challenge after Brexit uncertainty” says the survey. 

It continues: “The volume of agreed sales also continued to slip, with virtually all parts of the UK displaying a flat or negative trend in the latest results. Alongside this, the average time taken to sell nationally, from listing to completion, was unchanged at 19.4 weeks - the joint longest average since the question was introduced to the survey two years ago.” 

RICS says the most negative feedback continues to come from London, and the South East, as well as East Anglia and the South West. 

Scotland and Northern Ireland are now the only parts of the UK displaying positive readings on this measure, while all remaining areas are reported to be flat. 

Even so, most surveyors expect price growth this year in almost every region of the UK except for London and the South East.