Cheers Kier? Housing market enjoyed post-Election pick-up, says RICS
The surveying trade body reports the first increase in new buyer enquiries in four months, during July.
The property market enjoyed a post-General Election pick-up last month, the latest RICS survey reveals.
Its UK Residential Property Survey reports average mortgage rates lowered slightly during the month as the market correctly anticipated an interest rate cut by the Bank of England last week.
This has improved positivity in the sector, RICS says, but the full impact of the rate cut, and the Government’s announcements on housing reform will not be evident until next month’s report.
New buyer numbers up
New buyer enquiries picked up a little in July, with more people looking to buy a home – up +2% (net balance), compared with -6% last month.
It is the first time in four months that we’ve seen positive numbers of buyers looking to enter the market.”
“It is the first time in four months that we’ve seen positive numbers of buyers looking to enter the market,” RICS says.
The number of agreed sales also saw an improvement. Whilst this month’s -2% result is still inside negative territory, it’s a clear improvement and continues the positive trajectory since it scored -13% and -6% in May and June, respectively, the trade body says.
With the election over and a 0.25% cut this month, the autumn market should begin with renewed impetus.”
Simon Rubinsohn, Chief Economist at RICS, says: “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.”
Tom Bill, Head of UK Residential Research at Knight Frank, says: “Many buyers and sellers were planning their summer holiday in June and July rather than a property purchase thanks to the distraction of the election and the prolonged wait for a rate cut.
“With the election over and a 0.25% cut this month, the autumn market should begin with renewed impetus.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “We have noticed more optimism about prospects for the housing market now that election uncertainties are behind us and mortgage rates seem to be heading south.
“However, with so many buyers and sellers on holiday, demand and the pace of transactions has only picked up a little and we expect a stronger bounce-back in September.”
Tomer Aboody, Director of MT Finance, says: “A definite shift in positivity over the past month is evident due to the expected (now a reality) interest rate reduction, along with cheaper mortgage rates.
“While transaction volumes are still low, hopefully a further reduction in mortgage rates can boost these and increase volumes.”
