Finance · Hometown Post
The UK property market is showing signs of stabilising as declines in buyer demand and sales eased during August, according to industry surveyors. Data from the Royal Institution of Chartered Surveyors (Rics) reveals that a net balance of 19% of property professionals reported a drop in new buyer inquiries rather than an increase. Buyer interest remains in negative territory, but this represents the fifth consecutive monthly improvement and the least pessimistic reading since January.
Similarly, agreed sales saw a net balance of 17% reporting a decline—the least negative reading since February, a rebound from April’s low when 38% reported falling transactions. Sales expectations for the upcoming three months moved closer to neutral, with a net balance of 3% anticipating a reduction in activity, compared to 13% who expected a fall in July. Over the next 12 months, a positive net balance of 6% of professionals now forecast higher sales volumes, up from 3% in the previous survey, indicating a modest recovery in broader market confidence.
House prices remained under downward pressure, with a net balance of 28% of professionals seeing falls, compared with 29% in July, showing gradual improvement from April’s net balance of 35%. London’s price balance remained more negative than the average but improved on July. Professionals in Northern Ireland reported rising prices, while the North West of England maintained gentle price growth.
The lettings market saw rising tenant demand and constrained supply, putting upward pressure on rents. The net balance of professionals expecting rents to rise over the next three months increased to 44%, from 33% in July. Over the next 12 months, professionals expect UK rents to increase by around 3% on average.
Tarrant Parsons, head of market research at Rics, noted that August’s results show a market gradually finding its footing, with key activity indicators becoming progressively less negative. However, he highlighted that any potential recovery remains fragile, citing uncertainty over borrowing costs and the October budget. The Rics report was released as property website Rightmove recorded a back-to-school ‘bounce’ in the first week of September, with a 5% increase in buyer demand compared to the average 0.4% increase over the past five years.
Colleen Babcock, a property expert at Rightmove, described this as a welcome sign after a summer with holiday distractions and hot weather.
Source: The Independent
