Estate agents and surveyors predict the property market will recover in the coming months, according to the latest survey by the Royal Institution of Chartered Surveyors (Rics).
It said its members were seeing an increasing number of inquiries from buyers, as well as more sellers coming to the market.
The closely watched monthly survey takes the temperature of Rics members and offers a snapshot of what is happening in the property market across the country.
Increase in demand: An aggregate net balance of +8 percent of agents surveyed experienced an increase in new buyer inquiries during March, the most positive result since February 2022.
According to the survey, buyer demand continued to rise last month, recording the most positive reading in more than two years.
This means that an increasing number of Rics members reported more buyer inquiries during March.
Rics members also report that there are more houses for sale. According to the survey, the flow of new listings increased for the fourth consecutive month.
Looking ahead, a growing number of estate agents and surveyors predict a further improvement in activity in the coming months.
Regarding house prices, Rics members have become much less pessimistic than at the end of last year.
In September 2023, the vast majority of estate agents and surveyors expected house prices to decline.
Fast forward to March of this year and the sentiment is more or less neutral, suggesting there is now a more stable outlook for house prices.
In fact, most agents think house prices will rise over the next 12 months.
More supply: The flow of new properties coming onto the sales market increased for the fourth consecutive report, according to Rics
Tarrant Parsons, senior economist at Rics, said: “Demand continues to gradually recover across the UK housing market, with inquiries from new buyers rising for the third month in a row, according to the latest survey.”
‘With the inflationary environment becoming a little less difficult of late, this has raised expectations that the Bank of England will be able to start lowering interest rates later this year.
‘This should continue to support the market to some extent going forward.
“In line with this, near-term sales expectations point to an improving outlook, although the scope for an acceleration in activity will remain relatively limited given that mortgage rates will remain much higher than in 2020/21” .
What is happening with house prices? Rics real estate agents have a neutral outlook at the moment, while twelve-month expectations point to an upward trend.
What are Rics members across the UK saying?
All parts of the UK are expected to see house prices rise over the next year, with sentiment particularly strong in Northern Ireland, London and Scotland.
Nicola Kirkpatrick, Rics member in Belfast, said: “Prices remain strong due to demand within the area, and new listings are quickly converting into sales.”
London-based Rics member Joe Arnold said: “London is very busy [with] Good levels of supply and demand. We have had our best start to the year since Brexit.
‘Some sealed offers have returned and clients are paying more than the asking price for some prime properties. There are also good interests abroad.
Edinburgh-based Rics member Chris Hall added: “The market has been busier and more active in the first three months of 2024 than in the last three months of 2023.
‘[There has been] Promote sales activity, especially in urban areas, where the supply has been greater than in rural areas.
Everyone’s up: Rics members believe all areas of the UK will see house prices rise over the next year, with sentiment particularly strong in Northern Ireland, London and Scotland.
Meanwhile, Rics members in the East Midlands and East Anglia appear to be the most pessimistic about the outlook for house prices.
Some agents report a shortage of homes to sell, while others suggest homes are struggling to find buyers.
Peter Buckingham, a member of Rics based in Market Harborough in Leicestershire, said: ‘Activity levels are showing signs of recovery as we approach the traditionally busy spring market. There is still a shortage of stock available, which is holding the market back.’
Derby-based Rics member Stephen Gadsby added: “It remains a fragile market, although [there are] first signs of increased market activity. Properties will be sold at realistic prices.’
Mark Wood, a member of Cambridge-based Rics, said: “After a busier than expected February, March has been disappointing as overall activity has not increased as expected.”
“Perhaps after Easter, with better weather and growing anticipation of a fall in interest rates, there will be more activity.”
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