New sales instructions and buyer enquiries are on the up according to the latest RICS UK Residential Survey results (March 2024), predicting a ‘bounce in (the) housing market in both the near and longer term.”
The number of new properties coming to market rose for the fourth consecutive month with sentiment around listings up on February with +13% of respondents citing a pick-up in new instructions over the month to levels not seen since post-lockdown. Respondents also reported an increase in the number of appraisals.
The survey also identified that buyer demand has continued to rise; with the most positive results since February 2022; a net balance of +8% of respondents cited an increase in new buyer enquiries during March.
And with house prices, inflation, and mortgage rates broadly stable, the outlook for 2024 is positive according to RICS. +13% of respondents predicted sales volumes rising in the next three months, compared to a reading of +6% previously. Looking further ahead a net balance of +46% of respondents predict sales activity rising (up from +42% in February) over the next 12 months.
Tarrant Parsons, Senior Economist, RICS, comments:
“Demand continues to recover gradually across the UK housing market, with new buyer enquiries rising for a third month in succession according to the latest survey feedback.
“With the inflation backdrop turning a little less difficult of late, this has led to expectations that the Bank of England will be able to start lowering interest rates later in the year. This should continue to support the market to a certain degree going forward.
“In keeping with this, near-term sales expectations point to an improving outlook, albeit the scope for an acceleration in activity will still be relatively limited given mortgage rates are set to remain much higher than in 2020/21”.
RICS have also welcomed the launch of the Levelling Up, Housing and Communities (LUHC) Committee’s inquiry into the home buying and selling process.
“As the activity in the housing market increases, we welcome the inquiry into how the home buying process can be improved for consumers.
“RICS members working as agents and surveyors play a vital part in providing professional advice, ensuring that consumers are well informed on what for many is the most expensive purchase they will make. Their expertise will help shape the RICS recommendations and evidence to the inquiry committee this month.
“As a founding member of the Digital Property Market Steering Group, we are already working across the sector to identify ways that consumers and industry professionals can have access to the necessary information needed to buy and sell a home, reducing fall throughs and transaction times.”
said RICS Senior Public Affairs Officer, Sam Rees.
