Property prices in the UK were flat in November, latest RICS survey shows

House prices in the UK remained broadly flat at a national level in November with regional variations and activity stabilising, according to the latest analysis report. The near term outlook for prices and sales is flat with chartered surveyors unconvinced that the housing market will gain impetus in the coming months. The report from the Royal Institution of Chartered Surveyors (RICS) suggests that momentum in the residential property market continues to be stifled by persistent shortages of homes being put up for sale along with economic uncertainty. Prices did not move in November following a rise of 1% in October but the report points out that there were significant variations in price trends at a regional level. Indeed, London continues to return the most negative sentiment and respondents continue to report downward pressure on house prices across the South East. Alongside this, prices edged further below zero in East Anglia and remained slightly negative in the North East. Elsewhere, survey results continue to signal further price growth in all other regions in the UK. In particular, solid gains were reported in Wales, Northern Ireland and the North West. Three month expectations are now more or less flat at the national level as the net balance moved to -5% from -10% in the previous month. When disaggregated, sentiment remains particularly cautious in London and the South East but, in contrast to this, contributors are confident that prices will rise in the North West, Wales, Northern Ireland and Scotland during the three months ahead. The outlook for the next 12 months is positive, to a greater or lesser degree, in virtually all areas. London is the exception with sentiment remaining firmly in negative territory. The research also suggests that the trend in new buyer enquiries was more stable over the month having declined quite noticeably in October and September. A net balance of only -5% more respondents noted a decline in demand as opposed to an increase compared to -19% in October. At the same time, newly agreed sales continued to slide at the headline level albeit the pace of decline moderated to a certain degree. The net balance came at -10% following a reading of -20% previously. However, with the exception of Wales and Northern Ireland, where sales rose quite firmly, sales were either a flat or negative across most other areas. Looking at supply, new instructions to sell continued to deteriorate at the headline level. This extends a run of 22 months in which this series has not seen a positive reading. However, in part driven by the slower pace of sales, average sales per surveyor have now slipped for three consecutive months, stock levels on estate agents’ books held broadly steady at 44.7.