In October, the UK housing market saw a notable boost in activity, with buyer interest on the rise, according to survey findings. The Royal Institution of Chartered Surveyors (Rics) reported that “a net balance of 16% of property professionals observed an increase in house prices during the month,” reflecting a shift in market sentiment. While regions like Yorkshire and the Humber, as well as the South West, saw slight declines, the overall trend pointed to increased prices nationwide.
Uptick in Buyer Interest Fuels Market Movement
A net balance of 12% of surveyed experts reported a rise in new buyer inquiries, indicating renewed interest from prospective buyers. Reflecting on the future, the survey showed a net balance of 20% of professionals expecting house prices to continue their ascent in the upcoming quarter, with particular optimism in Northern Ireland and Scotland.
In the rental market, tenant demand is also climbing, yet the number of new listings from landlords continues to decline. According to Rics, this imbalance is pushing rental prices up, with a net balance of 33% of professionals forecasting rent increases driven by high demand and limited supply. Tina Paillet, president of Rics, commented, “Our data continues to indicate that renters are feeling the pressure from a limited supply of rental properties and rising rents.”
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Expert Opinions on Market Dynamics Post-Budget
Rics’ chief analyst, Tarrant Parsons, pointed out the positive trend in buyer activity, saying, “The UK housing market saw a continued pick-up in activity through October, with the recent improvement in buyer demand translating into growth in the number of sales being agreed.” This improvement in buyer demand signals a recovery in market confidence, which could potentially stabilize prices and maintain momentum in sales through the coming months.
Tom Bill, head of UK residential research at Knight Frank, noted the impact of recent budget decisions, which removed some uncertainties but introduced new considerations. He remarked, “The Budget removed some uncertainties for buyers and sellers but created others.” Bill emphasized the potential challenges ahead, citing rising mortgage rates as a factor likely to influence both house prices and transaction volumes, adding, “While there is now clarity around stamp duty and capital gains tax rates, we expect house prices and transaction volumes to come under pressure due to rising mortgage costs.”
Reflecting on broader economic factors, Bill speculated on potential policy impacts, saying, “While we don’t know how successful Labour’s revenue-raising plans will be or the exact shape of the economic policies pursued by the new US president, the trajectory for borrowing costs is unclear.”
A Changing Landscape for Buyers and Renters Alike
With increasing buyer interest and demand in the rental sector, the housing market appears poised for a period of growth, albeit tempered by economic pressures and shifting policies. As Parsons highlighted, the market’s recent gains could translate into sustained activity, particularly if buyer confidence remains strong despite headwinds from mortgage rates.
As both the buying and rental sectors navigate these dynamics, the focus for prospective homeowners and tenants alike will be on adapting to these trends, making informed decisions, and finding opportunities amidst evolving conditions.