Buyer interest reaches highest point in four years as spring arrives
The property market is experiencing a much-awaited surge this spring, as indicated by the Royal Institution of Chartered Surveyors (RICS).
Their latest UK Residential Survey for March 2024 reveals positive shifts in buyer demand, sales, and house prices.
Buyer interest continues to climb, with a net balance of +8% of respondents reporting an increase in new buyer inquiries in March - the most optimistic result since February 2022.
On the supply side, the influx of new listings onto the market has increased for the fourth consecutive month, with a net balance of +13% of respondents noting a rise in new instructions in March.
Agents are also conducting more property appraisals, potentially leading to increased listings in the upcoming weeks and months.
Looking ahead, respondents anticipate further growth in activity, with a net balance of +13% predicting increased sales volumes in the next three months, compared to +6% previously. Similarly, over the next twelve months, a net balance of +46% of respondents foresee an uptick in sales activity, up from +42% in February.
House price trends are also showing signs of improvement for the seventh consecutive month, with the net balance shifting from -67% in September 2023 to -4% in March. This indicates a more stable outlook for house prices across the UK.
Tarrant Parsons, senior economist at RICS, commented in the article: “Buyer demand continues to recover steadily across the UK housing market, with new buyer inquiries increasing for the third consecutive month according to the latest survey feedback.
“As inflation eases slightly, there is anticipation that the Bank of England will begin lowering interest rates later this year. This is expected to provide ongoing support to the market.
“Short-term sales expectations suggest an improving outlook, although the potential for a significant acceleration in activity remains limited due to expected higher mortgage rates compared to 2020/21.”
