The latest RICS UK Residential Property Survey also indicated signs of improvement for agreed sales, although the net balance remained in negative territory at -2%. This is an improvement from -13% in May and -6% in June, continuing a positive trend.
A net balance of +30% of respondents predicted rising sales over the next three months, the most optimistic outlook since January 2020. Long-term sentiment was also positive, with +45% of respondents expecting sales to increase over the next 12 months, up from +40% in the previous survey.
House prices, however, continued to decline on a UK-wide level, with a net balance of -19%. All English regions reported negative sentiment towards prices, with East Anglia and Yorkshire and the Humber showing the weakest readings. In contrast, Scotland and Northern Ireland saw price increases. Looking ahead, +46% of respondents expect prices to be higher in a year’s time.
In the rental market, the gap between demand and supply continued to widen. Demand rose modestly, with a net balance of +18%, while landlord instructions fell to a net balance of -16%. Although the rate of this gap’s growth slowed slightly, the trend suggests further rental price increases are likely.
“The new government’s focus on boosting housing development, alongside the recent quarter point base rate cut, does appear to have shifted the mood music in the sales market, with projections for both near and medium activity picking up,” said Simon Rubinsohn (pictured left), chief economist at RICS.
