Improvements shown in buyer demand, sales and house prices
The property market is experiencing a spring uplift, according to the Royal Institution of Chartered Surveyors (RICS).
In its latest UK Residential Survey for March 2024 improvements are shown in buyer demand, sales and house prices.
According to the survey, buyer demand continued to increase last month and saw the most positive reading for more than two years.
More homes coming to market
RICS members are also reporting that more homes are coming to the market. The flow of new listings rose for a fourth successive month, according to the survey.
Looking ahead, increasing numbers of estate agents and surveyors are predicting there will be further improvement in activity over the coming months.
As for house prices, RICS members have become far more positive than they were late last year. In September 2023, the majority of estate agents and surveyors were expecting house prices to drop. Looking at the sentiment in March this year, the consensus is more or less neutral, which points to a more stable picture for house prices. In fact, more agents than not believe house prices will increase over the next 12 months.
“Demand continues to recover”
Tarrant Parsons, Senior Economist at RICS said: “Demand continues to recover gradually across the UK housing market, with new buyer enquiries rising for a third month in succession according to the latest survey feedback.
“With the inflation backdrop turning a little less difficult of late, this has led to expectations that the Bank of England will be able to start lowering interest rates later in the year.
“This should continue to support the market to a certain degree going forward.
“In keeping with this, near-term sales expectations point to an improving outlook, albeit 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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