14 October 2021
An estate agent has warned that the housing sales market could collapse by spring if the declining trend of new homes listed continues.
Neil Foster, agent at Foster Maddison Property Consultants, said in the latest Royal Institution of Chartered Surveyors (RICS) UK residential survey: “On the current trajectory, the sales market could cease to exist by the spring.
“Vendors are not coming to market at anything near average levels and the stock of available homes continues to shrink month-by-month.”
The level of new housing supply coming to market remained in negative territory for the sixth month running with a score of -35 per cent in September, flat on -36 per cent in August.
Also pointing to constrained supply, respondents said the number of appraisals carried out by estate agencies in September was below the rate seen last year. On a monthly basis, this also slipped to -26 per cent from -10 per cent.
Scores are based on responses from chartered surveyors and estate agents with positive readings representing a rise in activity while negative readings indicate a decline.