Tuesday , September 27 2022

The British real estate market is the weakest six years, says Rics | the business


The UK real estate market is the weakest for six years, and prices are breaking or falling half a country to an official UK supervisory authority, with reports that sales are "uncertain" until a Brekit contract appears.

The Royal Institution Chartered Surveiors (Rics) said that a monthly survey of members found "the weakest reading since September 2012" in October, and prices fall in London, in the southeast, in the southwest and east of England.

Surveys expect that prices in these parts of the country will continue to fall in the next three months, although they predict that they will remain at the national level for the next 12 months.

Many surveyors have said the transaction activity has almost evaporated, as customers refuse to get into business until it becomes a sort of security compared to Brekit. In Ealing, western London, researcher Ronan McNamara of Robertson Smith and Kempson said: "Brekit is a big problem, which has influenced the customer's confidence."

Outside of London, Brekit's impact on carmaker manufacturers in Birmingham also contributes to falling markets. Alec Smith, an engineer at Birmingham, said "Uncertainty in JLR [Jaguar Land Rover] and other related motor crafts "has damaged market confidence.

Simon Rubinsohn, chief economist at Rics, said: "Uncertainty about economic prospects at the end of incredible negotiations with Brekit seems to be a key withdrawal of feelings."

Ricks' findings came only hours after Halifax, England's largest mortgage lender, said the annual price hike had dropped to 1.5%, the lowest rate since more than five years. In the fourth quarter, prices crawled to virtual downtime, rising only 0.2%.

A separate report from the British bank Coutts said the central London center "is uncertain" while negotiations with Brekit continue. It is said that prices in relation to their peak in 2014 fell by 14.7%, and the transaction activity fell by about a third.

However, some parts of the United Kingdom continue to experience rapid activity. Despite the fact that the Irish border remains the most difficult question about Brekit, the real estate market in the north is accelerating. "The strongest growth [is] comes again to Northern Ireland and Scotland, "Rick said.

In Belfast, Inspector Kirby O'Connor of GOC Real Estate said: "The sales market was very special during the past month, we noticed a strong appetite for investment."

In Hekham, Northumberland, Neil Foster of Foster Maddison said: "Sales remained consistent throughout October, with little or no impact of daily hysteria in the media via Brekit."

There were bad news for tenants, and Rics reported that rents began to rise despite the slowdown in the sale of apartments. It is said that there has been "a modest improvement in the demand of tenants over a period of three months to October," as the owners sold to avoid new taxation for the purchase. But, as demand rises and supply falls, Rics predicts only a small increase in rent.

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According to special data from Reapit, which manages rental software and real estate agencies, demand for rental rose by 13.3% in the past year, while the hasty decline was 6.9%.

"More than 10 owners are actively seeking sales, making the question," said Gary Barker of Reapit. "Although our research shows that rentals have remained flat evenly in the past year, we inevitably face continuous bidding on the supply side, which will lead to higher rentals in the near future. Simply not enough features to satisfy demand, and tenants face growing costs in a turbulent economy. "

The housing market was spurred by a help-buying scheme published by George Osborne in 2013.

While Brekit dominates the sales market, property experts say that other factors, such as customs duties and interest rates, also reduce market activity, especially among higher prices.

"For real estate sales of more than 1 million pounds, close to three quarters of respondents said sales prices were below the price," said Rics. "Moreover, 14% quotes sales prices on average more than 10% below the initial price [up from 10% three months ago]. "

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