A leading agent says the supply of homes coming to the market is still insufficient to match demand.
London estate agent Jeremy Leaf warns that “supply is still not increasing fast enough, despite the faster vaccination rollout. Nevertheless, we don’t expect a significant correction in prices, more of a softening at least for the next few months as confidence in the economy seems to be more of a priority than worries over the ending of the furlough scheme.”
Leaf was making his comments after seeing the latest market sentiment report from the Royal Institution of Chartered Surveyors - Leaf is a past RICS residential faculty chairman.
The report, based on the net balance of sentiment amongst respondents, shows a balance of 34 per cent seeing a reduction in new property listings in June: that’s sizeably worse than the 24 per cent seeing a reduction in May.
Prices reacted to the stock shortage with a net balance of 83 per cent of respondents reporting a price increases; a balance of 56 per cent expect more price rises over the coming 12 months.
With the main element of the stamp duty holiday ending, tubers was a drop in new enquiries.
RICS chief economist Simon Rubinsohn says: "Respondents to the latest survey are pretty unanimous in once again highlighting the challenge around supply whether in the sales or rental markets.
"While the role of the credit channel and the extended period of ultra-low interest rates can’t be ignored, it is critical the government is able to create the conditions to support higher levels of new build development to address the worsening affordability challenge."