Housing market continues to pick up, say upbeat RICS agents
RICS President says estate agent members report a significant uptick in activity including more instructions, demand and sales - but problems remain in rental market.
Estate agent members of RICS have reported a much-improved sales market and predicted even better times ahead but warned that renters face a difficult future as demand continues to outstrip supply.
Overall, the latest RICS Residential Survey reveals expectation among agents of a promising Autumn sales market as housing sector conditions continue to pick up with demand, sales and instructions all in positive territory, the first time this has happened since October 2022.
The biggest improvement recently has been in sales instructions, RICS reports, which it pins on more landlords seeking to sell buy-to-let properties along with owners of holiday homes ahead of a likely rise in CGT in the Chancellor’s budget at the end of this month.
Demand for homes for sale increased during September for a third month in a row, and many respondents to the survey said they expected this to continue until the end of the year.
RICS President, Tina Paillet, (main image) says: “As we approach the 100-day mark of the new Government, it is encouraging to see housing prioritised so strongly.
“Labour has moved quickly to outline ambitious planning reforms and set housing targets aimed at increasing supply. “Proposals for new towns, urban expansions, and the creation of ‘greybelt’ land demonstrate a clear commitment to addressing the country’s housing challenges.
“Now, it is crucial for developers and investors to feel confident that these reforms will not create planning, skills and resources bottlenecks, so we can make meaningful progress toward the goal of delivering 1.5 million new homes.”
Rental market
But Paillet says the lettings market remains problematic for renters as the number of tenants seeking homes to rent continues to outstrip supply including last month a surge in tenants registering with agents to view properties but a significant reduction in the number of properties being listed to rent.
“Our survey results highlight the pressures on renters, with demand consistently outstripping supply,” she adds.
“While the Renters’ Rights Bill aims to improve standards and offer better protections for tenants, we must ensure that these reforms do not discourage responsible landlords from remaining in the market.
“Most importantly, the planned changes in the private rental sector fall short of tackling the core issue: increasing supply and making housing more affordable for tenants.”
Industry reaction
Tomer Aboody, director of lender MT Finance, says: “With lower rates and potentially a further cut in base rate on the way, buyers are feeling more confident about taking the plunge.
“Lower rates are resulting in better affordability, which is enabling buyers and sellers to be more active than they have been during the past 24 months, after rates shot up and left the market reeling.
“Although property prices are rising, we need to remember that they’re increasing against a lower benchmark from 2022 following the adverse market reaction to Liz Truss’ ill-advised Budget.
“Talking of budgets, we await to see what Rachel Reeves will deliver later this month, but very few are holding their breath for a positive outcome.”
