Welsh property market reports drop in new buyer enquiries as house prices rise

By Chloe Shakesby   |   Property writer   |
Thursday 8th September 2022 4:00 pm
@chloeshakesby
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Enquiries for new house sales in Wales have dropped. (Tierra Mallorca on Unsplash )

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New figures have revealed that homebuyer enquiries in Wales plummeted last month.

The data, from the Royal Institution of Chartered Surveyors (RICS), showed that although house prices continued to rise, enquiries and sales fell.

In August, 64 per cent of Welsh property professionals reported a fall in new buyer enquiries, a 15 per cent difference from July’s 49 per cent.

Agreed sales dropped from a net balance of -13 per cent to -24 per cent, representing an 11 per cent fall.

The institute predicts that figures will drop an additional 14 per cent in the next three months, decreasing to -38 per cent.

Further in the future, RICS expects that in 12 months there will be a net balance -50 per cent - the most negative that the figures have been in four months.

Some of this is due to a lack of homes being put on the market, with 15 per cent fewer new instructions in August than in the previous month - but this scarcity is driving house prices, which increased by an average of 16.1 per cent year-on-year in August.

Tarrant Parsons, senior economist at RICS, commented: "Concerns over the economic backdrop and rising interest rates continue to take their toll on market momentum, with strong activity early in the year now giving way to a more subdued picture.

"Moreover, given projections for the UK economy point to a potential recession emerging towards the end of 2022, respondents envisage housing sales continuing to slip in the coming months.

“For the time being at least, the lack of stock available on the market is still providing support to house prices, which continue to rise, even if the pace of growth has cooled over recent months."

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