The Royal Institution of Chartered Surveyors (RICS) reports a positive upturn in the UK housing market. Demand, sales, and new listings have all increased, and national house prices are rising for the first time in two years.
The September 2024 survey reveals that buyer demand has grown by 14% (net balance), for the third consecutive month. Sales sentiment has improved (+5%), with positive forecasts for the next three and twelve months. The number of properties available for sale has increased by 22%, partly due to potential capital gains tax rises.
National house prices have grown for the first time since October 2022, but growth is slower in some regions like the West Midlands, South West, and East Anglia.
Demand for rental properties continues to outpace supply, leading to rising rents and difficulties for tenants. This is partly due to landlords selling their properties to avoid potential capital gains tax increases.
Overall, the market is becoming more optimistic, influenced by recent interest rate cuts by the Bank of England and expectations for further reductions. However, the lack of rental properties remains a significant concern.
RICS president, Tina Paillet, said: ‘The government has moved quickly to outline ambitious planning reforms and set housing targets aimed at increasing supply. Proposals for new towns, urban expansions, and the creation of 'greybelt' land demonstrate a clear commitment to addressing the country’s housing challenges. Now, it is crucial for developers and investors to feel confident that these reforms will not create planning, skills and resources bottlenecks, so we can make meaningful progress toward the goal of delivering 1.5 million new homes.’
RICS head of Market Analytics, Tarrant Parsons, added: ‘The latest survey results once again convey a brighter picture for housing market activity, with the recent easing in mortgage interest rates continuing to support a recovery in buyer demand. Critical for the outlook, a further unwinding in monetary policy is anticipated over the months ahead, which should create a more favourable backdrop for the market moving forward.’
