The latest RICS Residential Market Survey reveals that sales of homes in the UK strengthened in February. The uptick is believed to be due to renewed interest from new buyers, despite the Bank of England’s decision to increase interest rates.
The survey showed that 17% of respondents said they had seen a jump in new buyer enquiries – the sixth time in a row an increase has been reported and the strongest it has been over this period. At the same time the number of agreed sales improved, with 9% saying sales of homes were increasing and strongest reading since May 2021.
Looking to the next three months, RICS predicts that sales are set to increase, albeit at a more modest pace – with a net balance of 11% (down from 20% in January). Looking further ahead though, respondents remained positive with sales expected to remain on a upward trajectory over the coming year.
Declining new sales instructions coming onto the market also appeared to stabilise in February, with only -4% of respondents saying they had seen a fall (less than -7% in January). Stock levels remain close to historic lows however and are still a major factor in sustaining house price inflation.
The pace of house price growth has again accelerated according to survey respondents, with 78% stating that prices had increased on a national level, while Wales, Yorkshire and the Humber, the Northwest of England and Northern Ireland showed especially elevated readings.
Unsurprisingly, respondents said they see national house prices rising further across the next three and twelve months. These expectations climbed slightly higher despite recent rate hikes from the Bank of England. All parts of the country are anticipated to see continued strong growth in house prices over the next 12 months.
