Following the General Election result, the UK housing market has seen a lift in sentiment, according to the December 2019 RICS Residential Market Survey. Sales expectations have risen sharply and a number of other key activity metrics have turned positive for the first time in several months.
According to RICS, this change in activity levels is expected to lead to house price rises in the near and longer term due to continued imbalance in supply. In December, 17% more survey respondents saw a rise rather than fall in enquiries from new buyers (up from -5% in November) at the headline level across the UK.
Regionally, the majority of areas saw interest from new buyers increase, with respondents in Wales and the North East in particular reporting solid growth. Enquiries also rose in London and the South East, marking a noticeable turnaround from the negative results in November.
Alongside a rise in enquiries from buyers, the number of agreed sales edged up at the national level, (+9% net balance). This is the first time since May 2019 that the number of agreed sales has shown a positive result. Agreed sales in London and East Anglia delivered amongst the strongest improvement in sentiment, (net balances of +22% and +23% respectively), while sales reportedly weakened in Northern Ireland and Scotland.