A more stable trend is now emerging in the UK housing market, according to the latest results for the RICS UK Residential Market Survey. Although anecdotal commentary from respondents remains generally downbeat, contributors reported a rise in buyer demand that new instructions have held steady, and that newly agreed sales also edged into positive territory for the first time in 28 months.
In June, 10% more respondents saw a rise in interest from new buyers, which is the first time since November 2016 that the survey has reported a rise in new buyer enquiries at the national level. As buyer interest picks up, there also seem to be signs of a more stable trend in numbers of those putting property up for sale. The new instructions indicator has now edged into positive territory for the first time in a year. However, with stock levels on estate agents’ books still around record lows, and appraisals lower now than at this time last year, it remains to be seen if this change will have a material impact on the supply issue.
Moving to lettings, the ongoing theme of a fall in landlord instructions on the back of changes in the tax treatment continues, pointing to a drop in supply of rental properties coming on the market for the 20th month in a row.