The Royal Institution of Chartered Surveyors (RCIS) said homes rated for retaining heat and saving on power were holding their value, according to 61% of the respondents of a market survey in December.
LONDON: Energy-efficient houses are holding their value despite a wider market downturn, according to an influential survey of UK estate agents.
The Royal Institution of Chartered Surveyors (RCIS) said homes rated for retaining heat and saving on power were holding their value, according to 61% of the respondents of a market survey in December.
The report also found property prices slid for a third consecutive month, confirming reports by mortgage lenders. RICS warned housing market is on a “downward trend” this year after rising mortgage costs and higher inflation ate into consumer budgets.
The trade body’s measure of near-term price expectations fell to a reading of minus 54% last month from minus 46% in November, growing pessimism among estate agents.
Simon Rubinsohn, RICS’ chief economist, said the figures shone a spotlight on the “emerging challenges in the housing market as new buyers grapple with more costly finance terms and uncertainty over the outlook for the economy”.
All regions across England are now seeing prices soften. East Anglia and the South-East recorded the sharpest drops in sentiment last month. Agents in the North-West of England, Scotland, Wales and London all experienced a particularly quiet month for activity.
Despite data from property portal Rightmove last week which pointed to a more lively January, the RICS survey added to concerns that the UK housing market is likely to tumble this year.
The Bank of England is expected to hike its key base rate again next month, following a string of nine rate rises which has bumped up mortgage costs at the quickest pace in three decades.
Official data on sales prices, which lag the RICS survey, showed that house prices in November had already pulled back from their record level the month before. Nationwide Building Society expects an 8% to 10% drop in house prices this year. — Bloomberg
