Rosalind Evans
The latest survey from the Royal Institution of Chartered Surveyors (RICS) provides a promising outlook for the UK housing market, indicating that house prices are expected to grow over the next year. This recovery follows a period of stabilization in March after several months of declining prices influenced by high-interest rates and the ongoing cost-of-living crisis.
According to RICS’s March survey, buyer interest has been gradually resurgent, marking the third month of increased inquiries. Tarrant Parsons, RICS’s senior economist, notes, “Demand continued to recover gradually across the UK housing market, with new buyer inquiries up for a third month in a row.” He adds, “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.”
The survey also highlighted a notable rise in property listings, with a fourth successive month of increases, demonstrating a strengthening in the market’s supply side. This improvement in demand and supply dynamics suggests a balanced recovery, with all regions of the UK, including Northern Ireland, London, and Scotland, expected to see an uptick in house prices over the next year.
The sentiment within the housing market is shifting positively. As Parsons pointed out, “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.” This tempered optimism underscores the delicate balance of recovery in a market still shadowed by economic challenges but now showing signs of a potential upswing.
