Estate agents and surveyors are predicting the property market will bounce back over the coming months, according to the latest survey by the Royal Institution of Chartered Surveyors (Rics).
It said its members were seeing rising numbers of buyer enquiries, as well as more sellers coming to market.
The closely-watched monthly survey takes the temperature of Rics members and gives a snapshot of what is happening on the ground in the property market across the country.
Demand rising: An aggregate net balance of +8 per cent of agents surveyed saw a rise in new buyer enquiries during March – the most positive result since February 2022
According to the survey, buyer demand continued to rise last month and saw the most positive reading for more than two years.
This means increasing numbers of Rics members reported more buyer enquiries during March.
Rics members are also reporting that more homes are coming up for sale. The flow of new listings increased for a fourth successive month, according to the survey.
Looking ahead, increasing numbers of estate agents and surveyors are predicting further improvement in activity over the coming months.
As for house prices, Rics members have become far less gloomy than they were late last year.
In September 2023, the vast majority of estate agents and surveyors were expecting house prices to fall.
Fast forward to March this year and the feeling is more or less neutral, suggesting a more stable picture is now in place for house prices.
In fact, more agents than not think house prices will rise over the next 12 months.
More supply: The flow of new properties coming onto the sales market increased for a fourth successive report, according to Rics
Tarrant Parsons, senior economist at Rics said: ‘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.’
What’s happening to house prices? Rics estate agents have a neutral outlook right now, while twelve-month expectations point to an upward trend emerging
What are Rics members saying across the UK?
All parts of the UK are anticipated to see house prices rise over the year to come, with sentiment particularly robust in Northern Ireland, London and Scotland.
Nicola Kirkpatrick, a Rics member in Belfast said: ‘Prices remain strong due to demand within the area, and new listings are quickly converting to sales.’
Joe Arnold, a Rics member based in London 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 bids are back, and clients are paying over the asking price for some prime properties. Good overseas interest too.’
Chris Hall, a Rics member based in Edinburgh added: ‘The market has been busier and more active in the first three months of 2024 than it was in the last three months of 2023.
‘[There has been] encouraging sales activity, particularly in urban areas when supply has been higher than in rural areas.’
All rise: Rics members think all areas of the UK will to see house prices rise over the year to come, with sentiment particularly robust in Northern Ireland, London and Scotland
Meanwhile, Rics members in the East Midlands and East Anglia appear to be the most downbeat about the prospects of house prices.
Some agents are reporting a shortage of homes to sell, while others suggest that homes are struggling to find buyers.
Peter Buckingham, a Rics member based in Market Harborough in Leicestershire, said: ‘Activity levels showing signs of recovery as we head towards the traditionally busy Spring market. There is still a shortage of available stock which is holding back the market.’
Stephen Gadsby, a Rics member based in Derby added: ‘It’s still a fragile market although [there are] early signs of more market activity. Realistic-priced properties will sell.’
Mark Wood, a Rics member based in Cambridge said: ‘After a busier-than-expected February, March has disappointed with general activity not increasing as hoped.
‘Maybe after Easter with better weather and increasing anticipation of interest rates dropping, there will be increased activity.’
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