RICS: East Midlands housing market continues to drop

The East Midlands housing market has started the New Year off in a similar fashion to the closing stages of 2017, according to the January 2018 RICS UK Residential Market Survey.

In January, new buyer enquiries and sales continued to drift lower across the region, as the three month sales expectations also pointed to further declines in the coming months.

Despite this, there is a little more optimism regarding the twelve month sales projections which are now slightly positive for the East Midlands.

For a fourth month in succession, new buyer enquiries in the region declined with 6% more respondents reporting a fall rather than rise.

Similarly, newly agreed sales also slipped, extending the run of negative readings back to April 2017.

Going forward, this subdued sales trend is expected to continue in the near term with 10% more respondents expecting sales activity to fall in the coming three months.

However, respondents envisage sales slightly picking-up for the East Midlands over the next twelve months as a whole.

The price balance for the East Midlands remained positive in January with 37% more respondents seeing a rise in prices across the region. UK wide there has been modest price growth.

Simon Rubinsohn, RICS Chief Economist said: “The latest RICS results point to housing transactions at a headline remaining pretty subdued over the coming months despite some more positive comments from contributors to the survey.

“Lack of inventory on agents’ books continues to provide a major challenge with the number of valuations being undertaken not suggestive of a pick-up in new supply anytime soon.”