Yorkshire and the Humber see fall in house prices despite ongoing decline in stock

House prices in Yorkshire and the Humber fell last month despite the level of homes for sale in the region remaining low, according to the April 2018 RICS UK Residential Market Survey.

During the month of April, 7% of residential surveyors in Yorkshire and Humber saw an increase in house prices (down from 10% back in March), and the average stock levels on agents books in the region remained at 38.

Comparatively, during the same time-period two years ago (April 2016) Yorkshire and Humber agents had 57 homes for sale on their books.

More respondents in Yorkshire and Humber also reported a rise in new buyer enquiries last month, but both sales and new instructions (homes coming onto the sales market) fell for the third consecutive month in a row.

RICS found that the ongoing shortage of housing stock in the region is expected to impact prices, with 35% of respondents anticipating prices increasing over the coming 12-months.

As for sales expectations in Yorkshire and Humber; only 5% of the region’s residential surveyors expect to see a rise in sales transactions over the coming 12-months.

Alex McNeil, MRICS of Bramleys in Huddersfield, said: “The market is showing a similar pattern to last year; however, we’ve seen a recent upturn in the number of viewings and offers, which provides some scope for optimism. Overall, demand levels remain strong, despite stock levels continuing to decline.”

Mark J Hunter, MRICS of Grice and Hunter in Doncaster, added: “The market is erratic with certain properties commanding strong interest whilst others little interest. But we’re starting to see more properties coming onto the market and, inevitably, some of these are overpriced.”

Simon Rubinsohn, RICS chief economist, commented: “The housing market typically tends to see a pick-up in activity at around this time of the year and the feedback from respondents to the latest survey does seem to be capturing some of this tone.

“However, once this seasonal pattern has been allowed for the underlying trend in transactions still remains broadly flat.

“Meanwhile, the impact of recent tax changes appears increasingly visible in the letting results with new instructions from landlords in the three months to end April falling again and at a faster pace than previously.

“Given what this says about the Buy to Let market at the present time, it is imperative that Build to Rent begins to take on a greater role to ensure those seeking to rent in private sector over the coming years have sufficient choice.”