Rise in number properties for sale

Royal Institution of Chartered Surveyors (Rics) has reported a rise in number of properties for sale in January

January saw a rise in the number of properties which is only the third time in the last 18 months. However this has not helped as new buyer enquirers have risen for the 10 months in a row.

There has also been a huge rise in demand from buy-to-let investors in the race the beat the 3% stamp duty increase in April.

Simon Rubinsohn, chief economist at Rics, said: “The rise in new instructions in January, although modest, is very welcome. However, with buy-to-let investors rushing to get into the market ahead of the stamp duty hike, the near-term pressure on prices is, if anything, intensifying despite a higher level of supply.”

Mr Rubinsohn added: “How the tax changes planned for the buy-to-let sector over the next few years play out remains to be seen, but there are concerns raised in the survey that some existing landlords will look to either gradually scale back on their portfolios or exit the market altogether as the more penal regime begins to bite.
“Against this backdrop, it is perhaps not surprising that the key Rics indicators points to further rent (as well as house price) increases.”

Written by: Houseladder