The Royal Institution of Chartered Surveyors (RICS) has released its latest UK Residential Market Survey, which shows a sharp decline in landlord instructions. The net balance for landlord instructions dropped 36% in June 2023, down from 5% in May. This is the largest monthly decline since the survey began in 2008.
The decline in landlord instructions is being attributed to a number of factors, including the rising cost of living, the Bank of England's decision to raise interest rates, and the uncertainty caused by the war in Ukraine. These factors are making it more difficult for landlords to cover their costs, and are leading some landlords to sell their properties or take them off the market.
The RICS survey also found that the sales market is continuing to slow down. The net balance for new buyer enquiries slipped to -45% in June, down from -20% in May. This is the lowest reading recorded since October 2022. The decline in buyer enquiries is being attributed to the same factors that are driving down landlord instructions.
Overall, the RICS survey suggests that the South London housing market is starting to cool. This is likely to be a gradual process, but it is something that buyers and sellers should be aware of.
Here are some additional thoughts on how the RICS survey relates to the South London market:
- The South London market is particularly sensitive to changes in the wider economy. This is because South London is a popular area for investors, and any changes in the investment climate can have a knock-on effect on the housing market.
- The South London market is also a relatively expensive market. This means that any changes in the cost of living or interest rates can have a more significant impact on the market than in other areas.
- Overall, the RICS survey suggests that the South London housing market is starting to cool. This is likely to be a gradual process, but it is something that buyers and sellers should be aware of.