Sentiment in the UK property market is gradually improving, according to a survey of estate agents.
The Royal Institute of Chartered Surveyors (RICS) found that more properties are being listed for sale and buyer demand is also rising.
There was a net balance of 8% between agents reporting an increase in new buyer enquiries during March and those reporting a fall, the highest level since February 2022.
And the flow of new listings coming onto the sales market increased for the fourth month in a row, with a net balance of 13% of respondents reporting a pick-up in new instructions in March.
Agents anticipate further improvement in activity over the coming months, with a net balance of 13% predicting a rise in sales volumes in the next three months, compared to 6% in the previous survey. Over the next 12 months, a net balance of 46% of respondents predict sales activity rising (up from 42% in February).
“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,” said Tarrant Parsons, senior economist at RICS. “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.”
