That the uncertainty in the UK property market is a short-term trend has been revealed by the latest Residential Market Survey conducted by the Royal Institution of Chartered Surveyors (RICS), which established an increase in buyer interest for the first time since February, 2016.
More than 8 per cent of the respondents of the survey reported an increase in inquiries for new homes. This increase is significant considering the recent political and economic developments in the UK.
The survey reinforces our view that the UK property market is dynamic and strong enough to withstand pressures from international ramifications. As the UK continues to formalize its exit from the EU, market-related uncertainties are expected to prevail, but in the long-term, investors in the property market will continue to benefit as the fundamentals of London housing are strong and mature.
London continues to remain the financial capital of Europe and the recent positive developments, such as Bank of England’s intervention to stabilise the sterling, London Mayor’s plan for the City, and the Chancellor’s push for new homes, will strengthen the real estate sector. Investors, particularly overseas investors, encouraged by the resilience of London’s property market continue to view the residential home sector as a safe bet.
This sentiment is also reflected among some of the real estate agents, who participated in the survey. These agents foresee a more stable trend in demand. They also provided a positive sales outlook on the expected growth in the next three months. Sales are expected to pick pace firmly over the next 12 months across key property markets including London, South East London and Scotland, according to the survey.
A clear picture of the UK property market should be available by the end of October, but we believe that the uncertainties are unlikely to last for long. With timely interventions by the law-makers and stakeholders of the housing sector, the UK will continue to remain an attractive destination for investments in real estate.
Image Source: standard.co.uk