UK house prices return to growth as sales market improves

The UK housing market continues to pick up, the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey shows.

The September 2024 survey found that demand, sales, and new listings had all returned to growth, while sentiment related overall national house price growth for the first time since October 2022. The outlook also looks broadly positive.

Overall demand from buyers recorded a +14% result (net balance), the third month in a row indicating growth. Sales sentiment also saw a rise, although more marginal (+5% net balance). Near-term, a net balance of +23% of respondents believes the sales market will continue to grow over the next three months, while longer-term twelve-month growth sentiment is even stronger (+45%).

New listings are also up, encouraging a growing demand, according to respondents (+22%). This is a clear rise from the previous month’s +9% result, indicating a readily available supply of property for sale. Respondents also cited potential rises in Capital Gains Tax (CGT) encouraging homeowners to list their properties for sale.

Additionally, according to respondents, house prices are growing overall at a national level for the first time in two years, although some regions are seeing less of a rise – West Midlands, the South West and East Anglia. September’s survey posted a +16% national price reading, up from a flat 0% result in August and positive for the first time since October 2022

Source: Property Industry Eye, October 2024