"The bigger issue, that will affect the housing market long after Brexit is out of the way, is the levels of investment in affordable housing."
However near term expectations for sales activity did improve to a certain degree, and a broadly stable trend is now anticipated to emerge across most parts of the country over the next three months.
Across the UK as a whole, new buyer enquiries fell for the second month in succession and newly agreed sales continued to slip, albeit the pace of decline appeared to ease.
Sales dipped across virtually all parts of the UK, with Northern Ireland the sole exception, and new instructions fell for the fourth consecutive month at the national level, with respondents across all parts of the UK reporting a decline. New property being listed on the market is expected to remain particularly weak in the immediate future.
Respondents reported flat house price growth on a national level. London, the South East, East Anglia and the North East all saw prices decline, while respondents in Northern Ireland, Scotland and Wales noted a rise in house price during October.
Looking ahead, respondents’ views on the near term sales outlook turned less pessimistic over the month, with responses now pointing to a steadier trend coming through. Further out, twelve-month expectations also improved, posting the highest reading in nine months.
Adrian Moloney, sales director of OneSavings Bank, commented: “With last month’s RICS figures showing the weakest performance since June 2016, the continuation of low sales this month is a clear indicator of consumer confidence. It is still too early to call a downturn in sales a trend at this stage. The impact of political uncertainty continues to drag on, as many opt to hold off buying for now. However, for the serious buyer, the bargains are there to be had, particularly with mortgage rates as low as they currently are.
“The great hope is that the election will provide some much-needed direction and stability for the economy. However, while campaigning will be focussed on Brexit, this is only one of many issues facing the housing sector that needs to be addressed. The bigger issue, that will affect the housing market long after Brexit is out of the way, is the levels of investment in affordable housing. Commitment to improving the current levels of housing stock must be a priority for the next Government, and is the only true way of improving home ownership levels.”
