UK house prices shift into positive territory for first time since 2022 - RICS

11th Sep 2024 11:39

(Sharecast News) - House prices sparked for the first time in nearly two years in August, industry research showed on Thursday, boosted by declining mortgage rates and improving confidence in the market.

According to the latest UK Residential Market Survey from the Royal Institution of Chartered Surveyors, the house prices net balance was 1, a significant improvement on July's -18 and the first time prices have moved into positive territory since October 2022.

In addition, a balance of 14 respondents predicted prices would continue to rise over the next three months.

A balance is the proportion of respondents reporting a rise in prices minus those reporting a fall.

The number of people looking to buy homes also increased in August, the survey showed, with a balance of 15, compared to 4 in July. New property listings ticked up to 7 from 3.

RICS called it a "positive shift" in the UK housing market.

Simon Rubinsohn, RICS chief economist, said: "The latest survey captures an improvement in sentiment over the past month in the wake of the modest decline in mortgage rates."

However, he also sounded a note caution: "Anecdotal remarks from respondents still demonstrate the need for realistic pricing to get deals done, with uncertainty both around the scope for further interest rate cuts and the likely contents of the forthcoming Budget keeping the mood in check.

"Affordability remains an issue in the sales market, even with somewhat cheaper finance now available."