Moderately positive readings were returned by surveyors responding to the Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey across sales, buyer demand and outlook for house prices in the near and medium term.
A net balance of +9% of surveyors saw agreed sales rise last month, the third successive reading in positive territory. This reading is up from +5% in September after sitting below 0% for much of the last two years.
Meanwhile, +16% of surveyors reported seeing a rise in house prices during October, up from 11% in September and 0% in August. A proportion of surveyors think house prices will rise over the next three months, with a net balance of +12% in October compared to +12% in the previous month.
Surveyors reported an increase in new buyer enquiries for the fourth consecutive month. However, the net balance seeing this fell slightly from +13% to +12% month-on-month.
RICS said that forward-looking indicators remained consistent with a further pick-up in sales volumes over the near term, although the rise in bond yields in recent weeks was likely to present a headwind as it feeds through into general lending conditions.
Wellness and wellbeing holidays: Travel insurance is essential for your peace of mind
Out of the pandemic lockdowns, there’s a greater emphasis on wellbeing and wellness, with
Sponsored by Post Office
According to the results, almost all parts of the UK are expected to see a rise in house prices in the year to come, led by continued robust growth across Northern Ireland and Scotland.
Rents set to rise higher
In the lettings market, a net balance of +19% of surveyors reported an increase in tenant demand over the three months to October.
At the same time, landlord instructions fell relatively sharply, evidenced by a net balance reading of -29% being recorded in October, the most negative figure since the end of 2021.
Due to the continued imbalance between rising demand and dwindling supply across the market, a net balance of +33% of respondents expect rental prices to be driven higher over the coming three months.
Jeremy Leaf, North London estate agent and a former RICS residential chair, said: “Even though the recent cut in interest rates is now likely to be repeated later rather than sooner, market sentiment remains positive.
“New buyer enquiries are on the up and more sales are being agreed but progress is slow, particularly due to improving stock levels.
“Some first-time buyers are looking to take advantage of investors withdrawing from transactions due to recent rises in stamp duty and before their own liability for the tax increases next April.”
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Housing market continues on positive trajectory but tenants to suffer higher rents
