Number of homes put up for sale hits 3-year low on Brexit woes - RICS
The number of homes being put up for sale in the UK fell to its lowest level since 2016 in September, according to the latest survey form the Royal Institution of Chartered Surveyors.
The new instructions net balance fell to -37% last month from -6 in August, marking the weakest reading since June 2016, with average stock levels on estate agents’ books near record lows as Brexit uncertainty put homeowners off selling.
Meanwhile, the net balance of surveyors reporting that house prices had risen over the last three months nudged up to -2 from -4 in August, coming in ahead of expectations for a reading of -7.
The new buyer enquiries balance fell to -15 in September from +1 in August, after holding more or less steady for the last four months.
RICS chief economist Simon Rubinsohn said: "There are good reasons for thinking the latest dip in both buyer enquiries and vendor instructions is a response to the endless wrangling about Brexit, as the October 31st deadline approaches.
"Indeed, much of the commentary from respondents based further away from London and the South East remains relatively sanguine, which is also reflected in some of the metrics capturing expectations.
"However, unless there is a speedy resolution to the ongoing impasse it does seem inevitable that the standoff between purchasers and sellers will deepen making it harder to complete transactions. This will not only be a direct hit on the housing market itself but could have ramifications for the wider economy as the normal spend on furniture, fittings and appliances that typically accompanies a house move is also put on hold."
Capital Economics said: "According to the RICS survey, buyer and seller numbers fell sharply in September, as renewed uncertainty hit housing market confidence. But the big picture is that, even if Brexit uncertainty were to be resolved in the coming months, house prices and transactions are unlikely to rebound anytime soon."