The RICS UK Residential Survey for the month showed that there was an improvement in sales and buyer demand
Activity in the UK housing market rose in August due to cuts in borrowing costs, according to data from a trade body.
The RICS UK Residential Survey for the month showed that there was an improvement in sales and buyer demand.
As per RICS, respondents gave a score of 15% for new buyer enquiries, up from 4% previously, indicating a month-on-month rise. RICS said this was also the most positive reading for this metric since October 2021, but noted that this was rising from a low base.
Respondents returned a reading of 6% for newly agreed sales, an improvement on the reading of minus 1% previously. The study’s respondents also suggested there would be a rise in sales in the future, with expectations for the next three months recording a score of 37%. Over the next 12 months, sales activity is set to remain strong, with surveyors giving a response reading of 45%.
As for the supply of housing, respondents to the RICS survey gave a score of 7% for new instructions, up from 3% the month before.
Royal Institution of Chartered Surveyors said this suggested a positive trend in the flow of properties being listed for sale.
According to Royal Institution of Chartered Surveyors, the pipeline for supply is expected to be “relatively solid” in the near term.
Sara Palmer, distribution director at TML, said the last of the summer sun warmed up the property market, which had been helped by mortgage rates easing.
Simon Rubinsohn, chief economist of RICS, said: The latest RICS survey captures an improvement in sentiment over the last month in the wake of the modest drop in mortgage rates, with buyer interest improving, although from a relatively low base, and stock levels rising.
Nevertheless, anecdotal remarks from respondents still demonstrate the need for realistic pricing to get deals done with uncertainty both around the scope for further interest rate cuts and the likely contents of the forthcoming Budget keeping the mood in check, he added.
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