Buyer demand has moved into optimistic territory for the primary time since December 2024, the newest index from the Royal Institution of Chartered Surveyors exhibits.
This implies that extra survey respondents reported a rise in new purchaser enquiries than the quantity who reported a lower, ensuing within the first web optimistic studying for demand for the reason that finish of final yr.
June’s determine was +3%, which was a major upward swing from -22% in May.
There was additionally a restoration within the variety of gross sales agreed, with fewer survey reporting a lower, which took the web stability to -3%.
While the studying for gross sales remained in destructive territory, it was considerably higher than the -25% and -28% reported in earlier surveys.
There was a slight decline within the variety of new directions from sellers, from +7% to +3%.
House costs stay in barely destructive territory, however with the web stability for June at -7%, near May’s studying of -8%, which means extra respondents are nonetheless reporting decreases in property costs of their space than will increase.
However, the outlook for the following yr forward is extra optimistic with 24% of respondents anticipating costs to rise over the following 12 months.
Tenant demand remained steady, with a web stability of -2% for June. Instructions from landlords continued to say no, with a web stability of -21%.
Looking forward, 24% of respondents count on rents to rise within the subsequent three months, however that is down from +43% in May.
Rics head of market analysis and evaluation Tarrant Parsons says: “The UK residential market seems to be getting into a extra settled part, with demand displaying indicators of stabilising following a interval of volatility.
“The earlier distortion brought on by transactions being introduced ahead forward of the Stamp Duty modifications now seems to have largely dissipated, permitting underlying tendencies to re-emerge.
“Encouragingly, near-term gross sales expectations have begun to edge larger, pointing to a modest shift in sentiment.
“That mentioned, confidence available in the market stays considerably delicate, with financial uncertainty at each the home and international degree nonetheless seen as a possible headwind.”
Market response
North London property agent and former Rics residential chairman Jeremy Leaf says: “The market feels a bit like one step ahead, one-and-a-half steps again. Although doing its greatest to get well exercise ranges prevailing earlier within the yr, there’s little signal of a major decide up but.
“In our workplaces, demand has improved, significantly for homes reasonably than flats, and most gross sales agreed are staying that approach regardless of some value renegotiation.
“However, the quantity of property obtainable and worries in regards to the economic system – whatever the prospect of additional rate of interest cuts later within the yr – are proving extra related for a lot of.”
MT Finance director Tomer Aboody says: “Activity available in the market continues to strengthen as consumers return after the lull following the tip of the stamp responsibility vacation.
“First-time purchaser numbers specifically are choosing up as rates of interest stay regular and lenders extra versatile relating to mortgage approvals.
“However, gross sales numbers nonetheless want to enhance as it will profit the broader economic system, not simply the housing market.
“Some encouragement is required through a reform in stamp responsibility to encourage these transferring up the ladder, in addition to these downsizing, to make the leap.”
Shawbrook managing director of actual property Emma Cox says: “As market circumstances start to settle and rising home costs have began to plateau, we’re seeing a welcome return to development in purchaser demand, which has perked as much as optimistic figures for the primary time since December final yr.
“It’s clear {that a} quiet confidence is returning, and consumers have adjusted to a brand new panorama now that the stamp responsibility exemption removing is firmly within the rear view mirror.”
