"Anecdotal remarks from respondents still demonstrate the need for realistic pricing to get deals done "
- RICS chief economist, Simon Rubinsohn
The latest RICS Residential Survey for August reports a positive shift in the UK housing market, spurred on by the recent decrease in mortgage interest rates.
Buyer demand and sales activity are on the rise, with industry professionals anticipating further growth as we move into the final quarter of the year.
August’s survey results shows a rise in the number of people looking to buy homes, with a net balance of +15 of respondents noticing an improvement in this survey indicator (+4 in July).
House prices are starting to increase after almost two years of decline with August’s survey showing that prices have moved into positive territory for the first time since October 2022, with a net balance of +1 and with +14 of respondents predicting a steady rise over the next three months.
On the supply side, the number of new property listings has seen a modest increase (+7 up from +3 in July), with reports on the volume of appraisals taking place suggesting this will continue to increase, improving the choice for new buyers.
RICS chief economist, Simon Rubinsohn, commented: “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, and stock levels edging up.
“However, anecdotal remarks from respondents still demonstrate the need for realistic pricing to get deals done with uncertainty both around the scope for further interest rate cuts and the likely contents of the forthcoming Budget keeping the mood in check."
