The RICS said on Thursday that its main house price balance, which measures the difference between surveyors seeing falls and rises in house prices, moved into positive territory for the first time since October 2022
British property surveyors expect sales to continue to rise in the coming months after a gauge of house prices turned positive for the first time in around two years, though concerns remained about affordability despite declining borrowing costs.
The RICS said on Thursday that its main house price balance, which measures the difference between surveyors seeing falls and rises in house prices, moved into positive territory for the first time since October 2022.
Its house price balance rose to +1 in August from -18 in July. A measure of expected sales over the next three months was the strongest since January 2020, before the pandemic struck the UK.
Other indicators of Britain’s property market have pointed to momentum picking up in the sector after a recent drop in interest rates.
According to data from mortgage lender Halifax, house prices rose at the fastest annual pace since late 2022 in August, although rival Nationwide said prices declined month-on-month by 0.2% in August, the first monthly decline since April.
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said there was some uncertainty about the scope for further interest rate cuts by the BoE and the upcoming budget.
Affordability remains an issue in the sales market even with somewhat cheaper finance now available but the picture seems even more acute in the lettings market where the amount of rental stock continues to decline, he added.
RICS’ monthly survey also showed an improvement in overall sentiment and buyer interest. Its measure of new buyer enquiries increased to a net balance of +15 in last month from +4 in July, the highest since October 2021.
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