LONDON (Reuters) – The gradual begin to 2021 for the UK property market lasted till February, earlier than Finance Minister Rishi Sunak introduced new measures that might revive a property increase that started after the primary Final 12 months’s COVID lockdown, an investigation confirmed Thursday.
The Royal Establishment of Chartered Surveyors mentioned new purchaser inquiries remained adverse, however lower than in January, and new sellers had been postpone by ongoing restrictions on coronaviruses.
The RICS month-to-month home worth gauge rose to + 52%, barely above + 49% in January and nonetheless signaling widespread experiences that costs and gross sales will enhance barely over the subsequent three months.
Different UK housing market measures have additionally prompt that exercise within the housing market has began to fade forward of the scheduled expiration of a short lived dwelling buy tax discount – generally known as stamp responsibility – on the finish of March.
However final week, Sunak prolonged the tax break and introduced a brand new mortgage assure scheme for first-time consumers who cannot afford massive deposits.
Three-quarters of the responses to the RICS survey arrived earlier than Sunak’s announcement on March 3.
“The measures introduced final week … are anticipated to assist prop up the housing market over the subsequent few months with considerations round a cliff-edge finish to the easing of stamp responsibility breaches,” mentioned Simon Rubinsohn, economist in head of RICS.
“Nevertheless, a really clear message from the most recent survey is that extra must be accomplished to deal with the availability scarcity, with worth and lease expectations clearly persevering with to speed up.”
Surveyors anticipated rental property earnings to extend within the coming 12 months, aside from London, the place chartered surveyors anticipated rents to be steady.
Nevertheless, knowledge from property web site Rightmove on Wednesday confirmed that renters’ appetites for property in central London and its interior suburbs jumped on the prospect of life returning to one thing extra regular because the COVID pandemic. again off.
Reporting by Andy Bruce; Edited by William Schomberg