Although new buyer enquiries in the UK fell for the seventh consecutive month, there was some good news in Scotland and Northern Ireland, according to RICS figures.
Although new buyer enquiries in the UK fell for the seventh consecutive month, there was some good news in Scotland and Northern Ireland, according to RICS figures.
The RICS says despite the changes to stamp duty in Scotland providing an incentive to first time buyers, the market still faces affordability constraints, a lack of stock and an “air of caution” surrounding the General Election.
Scotland and Northern Ireland
Interest in new homes was up in Scotland and is predicted to rise further with the introduction of the new land and buildings transaction tax (LBTT), which replaces Stamp Duty in April.
It is thought by the RICS will see a rise in the number of first time buyers getting on the housing ladder.
The housing market in Northern Ireland also recorded the strongest price momentum for the fifth consecutive month, with nearly half (47%) of surveyors reporting increases in prices.
Kevin Maley of Strutt & Parker’s Inverness office said: “With the new Land and Building Transaction Tax coming into effect in Scotland from 1st of April this year, there has been quite a bit of activity following the uncertainty caused in the Independence Referendum and before the new legislation.
"With buyers paying more tax on properties over £350,000 it has especially been at this level and above that both buyers and sellers have been keen to get their homes on the market and sold as the transaction must be completed before 1st April.”
The UK-wide picture
Figures for England and Wales were not so promising, suggesting that the recent cooling of the market is set to continue.
Price growth in the two countries has almost levelled off. Just 2% more surveyors said that they expected prices to increase over the next three months.
The English figures were hit by the cooling London market. The capital saw a continued deterioration of prices and drops in both buyer enquiries and sales. The new figures show that 49% more respondents saw prices in London drop.
Lettings market
There was some good news in the lettings market. There was a 19% growth in the number of surveyors reporting a rise in tenant demand in the three months to January.
Although supply of rented property appears to be dropping, the RICS found some evidence to suggest that some new build rental properties are coming to market.
Surveyors’ rental growth expectations are at 4.6% a year for the five years ahead.
Sales optimism
Although mortgage approvals have dropped, there was a slight increase in the number of sales agreed in January.
The yearly forecast for property sales is now more optimistic with 48% of surveyors predicting a rise in sales.