Yorkshire & Humber house prices continue to rise despite stagnant market

Yorkshire and Humber house prices continued to rise last month, due to an ongoing lack of available housing stock and new instructions to sell, according to the latest RICS (Royal Institution of Chartered Surveyors) UK Residential Market Survey.

A net balance of 69% more surveyors in Yorkshire and Humber reported a rise in house prices during August, which is up from 49% back in July.

Over the next three months, 57% more respondents expect prices to continue rising across the region.

Additional RICS analysis - using ONS data as the comparator - also reveal that prices are likely to rise in the region of 6%, across all areas of the UK, over the course of 2015; compared with 3% predicted at the beginning of the year.

Meanwhile, only 27% more surveyors in Yorkshire and Humber expect to see an increase in sales over the coming three months (down from 37% back in July). This is due to the decreased number of homes on the market, which causes potential buyers to put a hold on buying until more properties that suit their requirements become available.

Demand from potential buyers also dropped during August, with only 28% of surveyors in Yorkshire and Humber reporting an increase in buyer enquiries, down from 51% back in July.

As for the lettings market, demand for rental properties continued to grow, with 55% more respondents in Yorkshire reporting a rise in tenant demand. Rents are also expected to increase in the near term, with 29% of respondents predicting an increase in rents during the next three months.

Alex McNeil, RICS Registered Valuer of Bramleys Estate Agents in West Yorkshire said: “Available housing stock is declining, whilst there is a dearth of new instructions to sell. Perhaps home owner aspirations have been tempered by years of economic uncertainty.”

John E Haigh, MRICS of Lister Haigh in Knaresborough added: “Talk of interest rate rises is making it even harder for first time buyers to decide to buy, keeping them out of the housing market for even longer.”

Simon Rubinsohn, RICS Chief Economist, also commented: “Given current market conditions, the latest data unsurprisingly shows house prices continuing to rise, and at an accelerating pace. As such, house price inflation has now quickened in each of the last seven months following a sustained period of easing towards the latter half of 2014.

“And there is good reason for this trend to be sustained into next year, however uncomfortable that may be for those looking to enter the market, given that so many of our members are telling us that they are struggling to replace the stock they have sold.”

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