RICS: Stamp Duty reform will boost activity

The latest Residential Market Survey from the Royal Institute of Chartered Surveyors has found that RICS members across much of the country expect transactions levels to increase as a result of the stamp duty reforms.

Related topics:  Mortgages
Rozi Jones
11th December 2014
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Members expected an average rise in volumes of somewhere between two and five per cent, but in central London, the feedback was more mixed, with members on balance anticipating a modest decline in activity.

The survey stated that the stamp duty policy development has "the potential to trigger a material shift in market sentiment and functioning".

The survey also looked at national house price inflation, and found that weaker demand was reflected in a further slowing in November sales figures, albeit only marginally.

The survey commented:

"This has been an ongoing theme for the past year and it remains to be seen whether the change in stamp duty will encourage more property onto the market. Significantly, the average volume of inventories on surveyors books remains close to the record low."

RICS members suggested that a lack of fresh stock combined with uncertainty surrounding the next general election have been contributory factors behind the deterioration in buyer interest, and that they had seen a decline in buyer enquiries for five consecutive months.

Compared to October figures, the sharpest fall was again in London, which was the only area reported to have slipping prices. According to the survey, all other parts of the UK produced numbers consistent with further increases in house prices in the near term, with Northern Ireland data showed a continuing rise in demand at a consistent pace.

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