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Limited demand for Welsh housing weighing on surveyors’ outlook

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A SLOWDOWN in demand in the housing market in Wales is leading to a cautious outlook amongst surveyors for the final quarter of the year, according to the latest Royal Institution of Chartered Surveyors (RICS).

A net balance of -43% of surveyors in Wales reported that new buyer enquiries fell through September which is the lowest this balance has been since October 2023, and the lowest balance across all the UK regions.

As demand is falling, supply is rising. A net balance of 31% of Welsh respondents reported that new instructions to sell increased in the most recent survey.

However, with limited demand, it is unsurprising that sales were reported to have fallen broadly flat through September. A net balance of -3% of surveyors in Wales noted that sales had fallen, down from +28% in August.

And this may be weighing on surveyors’ outlook for sales over the next quarter. A net balance of -10% of Welsh surveyors anticipate that house sales will fall through Q4.

Regarding pricing, respondents in Wales report that prices fell broadly flat through Q3. On the outlook, a net balance of -30% of Welsh surveyors expect prices to fall over the next three months.

Looking at the lettings market, a net balance of 67% of survey respondents in Wales noted a rise in tenant demand, whilst a net balance of -40% of Welsh surveyors noted a fall in landlord instructions. This has led to a net balance of 67% of surveyors expecting rents to rise through the final quarter of 2024.

Commenting on the sales market, Anthony Filice, FRICS of Kelvin Francis Ltd, in Cardiff said: “Appraisals and instructions are strong and if realistically priced, in the middle to lower price bands, are selling. Above £800,000 and especially over £1,000,000 are slow, we suspect, waiting on the result of the Budget. Some vendors are still asking too much and ending up with even less.”

Tim Goodwin, AssocRICS of Williams & Goodwin The Property People in Gwynedd added: “There has been a noticeable increase in sales falling through in recent weeks not helped by the implementation of Article 4 Planning controls over holiday lets and second homes.”

Discussing the lettings market, Paul Lucas, FRICS of R.K.Lucas & Son in Haverfordwest commented: “Availability of rentals is scarce as landlords and second home owners retreat from the market in the light of new government legislation. Demand is high and according to standard economics principles, rents are increasing – at the present time, mostly due to government intervention.”

Commenting on the UK picture, RICS Head of Market Analytics, Tarrant Parsons, said: “The latest survey results once again convey a brighter picture for housing market activity, with the recent easing in mortgage interest rates continuing to support a recovery in buyer demand.

“Critical for the outlook, a further unwinding in monetary policy is anticipated over the months ahead, which should create a more favourable backdrop for the market moving forward. In keeping with this idea, forward-looking sentiment data from the survey points to sales volumes gaining impetus, both in the near-term and over the next twelve months.”

Business

‘We can’t carry on as we are’: NRW set to face ‘rough old 12 months’

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NATURAL Resources Wales is not out of the woods after making £10m cuts, slashing 250 jobs and receiving a £19m loan to cover an unexpected tax bill, a committee heard.

Llŷr Gruffydd, who chairs the Senedd’s climate committee, warned Natural Resources Wales (NRW) has been in a constant state of evolution and flux for many, many years.

David Henshaw, who chairs the board, said: “We can’t carry on as we are,” with NRW having agreed a target of cutting £10.9m from its budget by April 1.

He told Senedd members NRW’s massively committed workforce has found the “case for change” process really tough, with 256 posts removed and vacancies unfilled.

But he stressed: “Our duty is to face the challenge and actually deal with it.”

Appearing before the committee for scrutiny of NRW’s 2023/24 annual report on March 12, Sir David warned: “It’s going to be a rough old 12 months or so.”

Ceri Davies, acting chief executive, described NRW as being at a pivotal point, with a renewed focus on climate and nature.

Ceri Davies, acting head of NRW
Ceri Davies, acting chief executive of NRW

She told the committee NRW has been trying to focus more on areas where it is uniquely best placed to deliver such as flood risk, biodiversity, water quality and regulatory work.

“It’s with a heavy heart that we give up some things,” she said.

Ms Davies added that NRW implemented a recruitment freeze, to minimise redundancies as far as possible, which has impacted on current staff.

“But we’re coming out of that now,” she said. “We’re supporting our staff through that and … we will be very shortly releasing opportunities for us to reinvest and to take on new staff.”

The Conservatives’ Janet Finch-Saunders questioned why NRW has an interim chief executive and a chief executive, asking how long the situation will continue.

Sir David replied that chief executive Clare Pillman has been off sick, saying: “She’s on the road to recovery, I think, so that’s why Ceri has been wonderfully acting up for us.”

Ms Davies has been acting up in the £150,000-a-year role since at least November, according to board papers.

Asked about funding in 2025/26, finance director Rachael Cunningham said NRW will have a total forecast budget of £298.3m – representing an annual increase of about £32.5m.

Carolyn Thomas, who chairs the petitions committee, raised public concern about NRW’s plans for its Nant yr Arian, Coed y Brenin and Ynyslas visitor centres.

Her Labour colleague Julie Morgan said the visitor centres are “much more than just a cafe”.

Sir David stressed: “These forests and places are not being closed, let’s be clear … what’s been looked at is the closure of cafes and shops which cost about £1m a year.”

He added: “We weren’t doing massive business in these shops and cafes, they were a big lossmaker … given the challenges of the budget,  we had to look very seriously at it.”

On a 6% cut to enforcement, Ms Davies explained NRW has instead prioritised prevention. “When we’re in the enforcement territory, the damage has already been done,” she said.

She told the committee NRW will continue to take action on significant offences as a deterrent, with a 30% increase in enforcement in 2023/24.

Pressed about the Welsh Government having to cover an estimated £19m tax bill for NRW due to off-payroll working, Sir David said a long list of public bodies face a similar situation.

“It’s an issue which has been very difficult for us,” said Sir David, a former chief executive at Liverpool Council. “And there are some questions we need to ask ourselves.”

He added: “Should we have been more aware earlier? Probably, yes. But actually would it have made much difference…? Probably not. We’ve made clear that in terms of employment now, we have none of the issues … so that’s been settled.”

Ms Cunningham declined to provide detail on the extent of liability accepted by NRW following February’s board meeting “because that’s in the hands of HMRC”.

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Business

Former Haverfordwest chapel school building could be turned into flats

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PLANS to convert the Sunday School building of Haverfordwest’s former Wesleyan Chapel, once the site of a regular place for preaching by John Wesley himself, to six flats have been lodged with Pembrokeshire County Council.

An application to council planners, which has no clear details about the applicant, listing Vitaly + Partners ltd as either the applicant or the agent, seeks the conversion of the Chapel Lane building.

Accompanying documents say Haverfordwest was a regular place of preaching for John Wesley, the founding father of Methodism, first visiting in 1763, with the first chapel built in 1772. By 1781 there were 60 members in the town, the largest congregation in the Pembrokeshire Circuit.

The chapel was rebuilt in 1818 and enlarged in 1835; the adjoining schoolroom built in 1874, with further chapel works in 1880-1.

The chapel closed in 1985 and the interior was stripped for use as an antiques showroom.

A heritage statement accompanying the application says: “The works on internal alternations of former school building started in 2014 after planning permission was approved. Then other records show that works has re-started in 2020. There are previous building inspector assessment notes available for more details. Since there has been numerous of owners and works started again in 2024.”

It adds: “The main factor to support proposed development is in fact it was approved few times in the past. The works already began, and the original layout and external elements are already altered.

“The building was abandoned and not maintained in any way. It did not look pretty and had a negative impact on the residents of the town.  The building has had its original use adopted numerous of times to suit the needs of the particular time period and serve the town accordingly.

“The maintenance work to the building has already shown how much cleaner and more beautiful the building appearance became and it has had good impact on the residents who shared their views on social media talking positively about the renovation works on the building.”

The application will be considered by county planners at a later date.

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Business

Halfords offering interviews to all staff affected by ATS closures in Wales

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HALFORDS extended an offer of interviews to all members of staff affected by the closure of the ATS Euromaster branches in Brecon, Pontypridd and Llanelli

This follows ATS Euromaster’s recent announcement that 86 of its service centres are set to close.

With 639 garages nationwide, including branches in these affected towns, Halfords is one of the UK’s largest employers of automotive technicians. The company services, maintains, and repairs vehicles for 1,400,000 customers annually.

The UK is currently experiencing a shortage of qualified automotive technicians, with the Institute of the Motor Industry (IMI) estimating 20,000 vacancies in the sector.

Halfords remains committed to creating rewarding career pathways, offering opportunities for qualified technicians looking to develop new skills—such as EV servicing—as well as young people entering the industry through apprenticeships.

In addition to supporting ATS employees, Halfords is also stepping in to help customers affected by the closures, ensuring they continue to have access to trusted and competitive automotive services.

Support for ATS customers

To assist those whose bookings are impacted by ATS branch closures, Halfords garages will prioritise MOT and other service bookings originally made with ATS wherever possible, helping customers avoid delays and ensuring their vehicles remain roadworthy.

“We are pleased to be working in partnership with ATS to explore employment opportunities for affected colleagues, while also ensuring that motorists in this part of Wales continue to have access to competitive, convenient, and trusted automotive services,” said Chris Rose, Halfords. Divisional Director

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