The housing market is showing signs of improvement, buoyed by a rise in demand.
- A steady increase in new buyer enquiries highlights growing interest in property.
- Sales volumes experience a modest upward trajectory, maintaining positive trends.
- House prices continue to exhibit a gradual increase across the UK.
- Industry experts remain cautiously optimistic about market conditions.
The housing market in the UK is beginning to show signs of recovery, as evidenced by the recent findings from the October 2024 RICS Residential Survey. The results indicate a gradual improvement in market conditions, supported by modestly positive readings across several key activities. A net balance of 12% of survey respondents indicated an increase in new buyer enquiries in October, sustaining a positive trend for four consecutive months.
Sales volumes have also shown a modest rise, with a 9% net balance of respondents reporting an increase, marking the third successive month of positive readings. This trend, although steady, does not indicate a sharp upturn but rather a slow and consistent improvement in the market.
In terms of future expectations, there is a sense of cautious optimism. The net balance for near-term sales expectations reached 34% in October, signifying a rise from previous months. Looking further ahead, a 6% net balance of contributors anticipate an increase in sales volumes over the next year, although this is slightly lower than the September figure of 44%.
The recent survey also highlights a solid pipeline for future listings, with an increased number of appraisals being conducted compared to the same period last year. This suggests a robust foundation for near-term market activity.
House prices have continued to grow steadily, with a 16% net balance of participants reporting a rise in October. This builds on previous months’ data and suggests a steady momentum in house price increases, particularly in regions like Northern Ireland, Scotland, the North East, North West, and London.
Industry experts have weighed in on these developments. Jeremy Leaf, a North London estate agent, noted that despite potential delays in further interest rate cuts, market sentiment remains positive, with first-time buyers entering the market to take advantage of changes in Stamp Duty policies. Likewise, Tomer Aboody from MT Finance pointed to a continuing interest in property transactions, as buyers perceive current interest rates as more stable or affordable.
The UK housing market is on a path of gradual improvement, driven by rising demand and steady price growth.
