There was a “positive shift” in the UK housing market in August as the new buyer enquiries reading was the most positive since October 2021, research from the Royal Institute of Chartered Surveyors has revealed.
The UK Residential Market Survey for August 2024 reported that, at an aggregate level, a net balance of 15 per cent of survey participants noted an increase in new buyer enquiries during August.
This represents an increase from the 4 per cent of respondents who identified a rise in enquiries in July.
However, the institute stressed this pick up is coming from a low base.
RICS chief economist, Simon Rubinsohn, said: “The latest RICS survey captures an improvement in sentiment over the past month in the wake of the modest decline in mortgage rates with buyer interest improving, albeit from a relatively low base.
“However, anecdotal remarks from respondents still demonstrate the need for realistic pricing to get deals done and uncertainty both around the scope for further interest rate cuts and the likely contents of the forthcoming budget keeping mood in check.”
The research also revealed the newly agreed sales indicator posted a net balance reading of 6 per cent, an increase from the figure of -1 per cent in July.
Going forward, contributors anticipate the recent uptick in demand could translate into a more meaningful increase in sales volumes over the next three months.
This was evidenced by the near-term sales expectations measure recording a net balance of 37 per cent.
Looking further ahead, a net balance of 45 per cent of respondents envisage sales activity strengthening over the next twelve months, extending the recent sequence of firmly positive readings for this indicator.
When it came to terms of fresh listings coming onto the market, the new instructions series produced a net balance of 7 per cent in August, compared with 3 per cent previously.
This is consistent with a slightly positive trend in the flow of instructions being listed for sale.
tom.dunstan@ft.com
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