A report found that new buyer enquiries rose in March, with a net balance of +8% of respondents noting an increase, marking the most optimistic result since February 2022
The UK housing market continues to show signs of gradual improvement with the latest Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS) suggesting a rise in buyer demand and a more positive outlook for sales expectations, as well as stabilising house prices.
The report found that new buyer enquiries rose in March, with a net balance of +8% of respondents noting an increase, marking the most optimistic result since February 2022. The supply of new listings on the market has risen for four successive months, with a net balance of +13% of survey participants observing a rise in new instructions.
Expectations for sales volumes over the next three months are positive, with a net balance of +13% of respondents expecting an increase, an improvement from +6% previously. Over a 12-month period, a significant +46% net balance of respondents expect a rise in sales activity, up from +42% in February.
The RICS survey also found the downward trend in house prices slowing down for the last seven months, with the net balance improving from -67% in September 2023 to -4% in March 2024, suggesting a stabilisation in house prices across the UK.
In the lettings market, tenant demand remained positive in March, with a net balance of +19%. Nevertheless, landlord instructions are still low, with a net balance of -19%, leading to an expectation among 34% of respondents that rental prices will increase in the next three months.
Demand continues to recover gradually across the UK housing market, with new buyer enquiries rising for a third month in a row as per the latest survey feedback, according to Tarrant Parsons, RICS senior economist.
With the inflation backdrop turning a little less difficult of late, this has led to expectations that the BoE will be able to start reducing interest rates later in the year. This should continue to support the market to a certain degree going forward, Parsons said.
Parsons added: In keeping with this, near-term sales expectations point to an improving outlook, although the scope for an acceleration in activity will still be relatively limited given mortgage rates are set to remain much higher than in 2020/21.
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