Housing Market Activity Surges in October
According to a report by the Royal Institution of Chartered Surveyors (Rics), the housing market in the UK showed promising signs of strengthening during the month of October. The survey conducted by Rics revealed that a net balance of 16% of property professionals observed house prices rising rather than falling in October. This news comes as a positive indication of the resilience and growth of the property market considering the challenges faced in recent times.
In a breakdown of regional data, Yorkshire and the Humber, along with the South West of England, were the only areas where property professionals noted price decreases. Despite this, a net balance of 12% of professionals reported an increase in fresh buyer inquiries in October, showing a growing interest in the housing market.
Looking forward, there is a positive outlook among property professionals, with a balance of 20% expecting house prices to rise over the next three months. Notably, professionals in Northern Ireland and Scotland displayed the highest level of confidence in anticipating price increases in the near future.
In the rental market, there has been a consistent rise in the number of tenants seeking accommodation, while the number of available rental properties has been decreasing. This imbalance between supply and demand has led to a net balance of 33% of professionals predicting a rise in rental prices over the next three months.
Tina Paillet, president of Rics, expressed concern over the limited supply of rental properties and the resulting impact on rising rents. The head of market analysis at Rics, Tarrant Parsons, highlighted the increase in buyer demand translating into a growth in the number of property sales being agreed upon, indicating a positive trend in the housing market activity.
Tom Bill, head of UK residential research at Knight Frank, noted that while recent government announcements have provided clarity on certain aspects such as stamp duty and capital gains tax rates, there are still uncertainties surrounding rising mortgage costs. The potential effects of Labour’s revenue-raising plans and economic policies under the new US president could further impact house prices and transaction volumes.
Overall, the data from Rics suggests a promising trajectory for the housing market, with signs of increased activity and confidence among property professionals. The sustained growth in buyer inquiries and expectations of rising house prices indicate a positive outlook for the property market in the coming months.
As the housing market in the UK continues to evolve and adapt to changing circumstances, it is essential for stakeholders to remain vigilant and proactive in navigating the challenges and opportunities that lie ahead. With ongoing support and prudent decision-making, the property market is poised to maintain its momentum and drive towards a more robust and sustainable future.