UK property market is improving but ‘realistic pricing’ is key
Agents’ and surveyors’ expectations of house price increases over the next 12 months have turned positive for the first time since October 2022. The latest RICS Residential Market Survey for August shows that house prices are expected to rise in the next 12 months, the first time that the data has been positive since the aftermath of the 2022 Truss and Kwarteng mini-Budget that rattled financial markets.
Other market indicators are also turning more positive. August’s survey results show a rise in the number of people looking to buy homes, the most positive reading for demand since October 2021. The newly agreed sales indicator also showed a rise on last month.
Simon Rubinsohn, chief economist for RICS, said: “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.”
