HOUSE sales in Berkshire have slumped in the first two months of the year according to new figures.
The south east and London are the worse affected areas in the country with prices continuing to fall.
However, industry leaders expect the market to turn around in the next 12 months and the good news is rentals have risen.
The gloomy statistics in the Royal Institute of Chartered Surveyors latest Residential Market Survey, show a deterioration in demand, sales and homes coming on to the market for sale.
During January, 39% of surveyors in the South East reported a fall in buyer enquiries, as demand declined to some degree across virtually all parts of the UK.
Alongside weakening demand, the number of new properties being listed on the sales market in the South East failed to pick-up last month too, along with agreed sales.
Uncertainties over Brexit has been partly blamed for the slump alongside affordability constraints causing uncertainty for buyers and sellers.
Anthony Webb, FRICS, of Trenchard Arlidge in Cobham, Surrey said: “Brexit uncertainties have stagnated the market in all price ranges with higher value properties further damaged by excessive Stamp Duty.
“Help to buy is assisting new build sales but damaging second-hand property activity as there are a lack of buyers.”
The South East’s lettings market fared slightly better, with 18% of surveyors in the South East reporting a rise in tenant demand – in the three months to January – while landlord instructions (rental property coming on to the market) also rose, resulting in 8% of respondents expecting to see rents rise over the coming three months.
David Boyden, MRICS of Boydens in Colchester said: “January has been a month of new landlord instructions and reduced rents as the number of applicants looking to rent has dropped. Lets are still being achieved, however rental offers are now being considered as the number of properties coming to market is affecting rents.”
Simon Rubinsohn, RICS Chief Economist, added: “Although some contributors to the survey have taken comfort from a better start to the year than anticipated, a larger proportion are continuing to find the market a difficult one in which to do business.
“Resolution of the Brexit negotiations is widely seen as critical to encouraging potential buyers back into the market, although whether that will be sufficient in London and parts of the South East, where affordability remains stretched and the tax changes are most penal, remains to be seen.”
