Property market revival continues but coronavirus looms - RICS
Demand for property purchases and prices increased for the third month running in February but the coronavirus threatens the revival in the housing market, according to the latest RICS survey.
New buyer enquiries, agreed sales and fresh listings increased in February, extending a run of positive readings that started in December, the Royal Institution of Chartered Surveyors said.
New buyer demand showed a headline net balance of +20, which is the difference between estate agents reporting demand rising and falling. Growth was reported in almost all areas of the UK.
Sales also rose with the monthly pickup in transactions strongest in Northern Ireland, East Anglia and London. Scotland was the only area where respondents reported a decline in sales. Prices rose across the UK and increases were strongest in Yorkshire and the Humber, London and East Anglia.
Sales expectations were positive for a fifth month though the outlook for sales in the near term and 12 months ahead weakened from previous surveys. RICS said agents raised concerns about the potential impact of the coronavirus on the traditional house selling season as the number of UK cases rises and the government considers emergency measures.
Simon Rubinsohn, RICS' chief economist, said: "It is encouraging that the results of the latest survey continue to show a positive trend both in terms of potential buyer interest and new instructions to agents. Indeed, this is the first time since 2014 that new supply to the market on the RICS indicator has increased for three consecutive months.
"Inventory levels are still at historically low levels despite this but the firmer trend in appraisals suggests that the picture could improve over the coming months providing the coronavirus doesn’t become more of an inhibitor of activity in the sector."
The property market has shown signs of revival following the Conservatives' decisive election victory in December, which promised reduced political and economic uncertainty. However, the spread of the coronavirus outbreak to the UK and other developed countries has raised the prospect of a sharp slowdown or recession.
Most commentators expect the UK outbreak to peak in the first half of 2020, coinciding with the property market's traditional busy period in spring and early summer.