The housing market was largely flat during January, estate agent members of RICS have revealed within the organisation’s monthly housing report.

The future outlook for sales, however, looks somewhat stronger, with the three-month forecast for sales producing a +10% result. And, according to RICS, the further forward, the more positive things get, with a +30% net balance for twelve months from now.

RICS generates it’s ‘net balance’ increases or decreases by measuring the number of agents reporting growth in an activity, and subtracting those report a decline.

House prices, though, are continuing to rise with +22% net balance responses indicating rises during January. Northern Ireland and the North West of England are seeing the strongest momentum at present.

Price growth is more modest in Yorkshire & the Humber and the South East but respondents show a clear belief that house prices will continue to rise across the country over the next twelve months (+55%).

Demand faltering

In the lettings market, demand continued to falter with a +2% result indicating no more than marginal growth.

Landlord instructions, in contrast, continued to fall (net balance -19%). So, despite demand recording some growth, further reductions in availability are increasing the gap between supply and demand.

Flatter picture likely linked to the turbulence seen across money markets in the first half of January.”

It means there is a net balance of +23% of respondents who believe that rents will continue to rise over the next three months.

RICS Head of Market Analytics, Tarrant Parsons, said: “The latest survey feedback indicates that growth in buyer demand lost a bit of momentum through the early part of the year, with this flatter picture likely linked to the turbulence seen across money markets in the first half of January.

“Nevertheless, moving forward, respondents continue to envisage a slightly positive near-term outlook for sales activity. This should be further supported by the unwinding of some of the pressures around mortgage interest rates over the past couple of weeks.”