The UK housing market confirmed surprising resilience in October, with property brokers reporting elevated gross sales, rising purchaser inquiries, and a brighter outlook following the Autumn Price range.
Regardless of pre-budget apprehension, the housing market outperformed expectations, in accordance with the newest survey by the Royal Establishment of Chartered Surveyors (Rics). Of the 269 property brokers polled, a majority reported extra gross sales in October in comparison with September, pushed partially by consumers looking for to finish transactions forward of potential budget-related tax adjustments.
Whereas some brokers noticed a slowdown within the weeks main as much as the October 30 funds, the general sentiment was optimistic. “We have had a wave of exchanges and completions, probably prompted by a desire to exchange before the budget,” mentioned Simon Milledge of Jackson-Stops in Blandford Discussion board, Dorset.
Equally, John King from Andrew Scott Robertson in Merton, southwest London, attributed October’s surge in exercise to a mixture of media protection on potential tax rises and easing mortgage charges.
Ian Perry of Perry Bishop in Cheltenham, Gloucestershire, famous: “[There was] a slight hiatus ahead of the budget but the market [is] now perking up again.”
Trying forward, 34 per cent of property brokers anticipated promoting extra properties inside three months, with even larger confidence about exercise ranges this time subsequent yr.
The survey additionally discovered a continued rise in purchaser inquiries for the fourth consecutive month, alongside a rise in new listings, creating what the Rics described as a “relatively solid” near-term pipeline. Reflecting this restoration, 16 per cent of respondents believed home costs have been rising, a major shift from two months in the past when costs have been seen as static.
Tarrant Parsons, head of market evaluation on the Rics, highlighted the momentum: “The recent improvement in buyer demand is translating into growth in the number of sales being agreed. Forward-looking sentiment points to this brighter trend continuing in the months ahead.”
Nevertheless, he warned {that a} post-budget rise in bond yields, which affect mortgage charges, might pose challenges within the quick time period.
Within the lettings market, tenant demand remained strong over the summer time, however provide constraints intensified. A internet 29 per cent of letting brokers reported a decline in landlord directions, marking essentially the most adverse studying since late 2021.
With rental properties in brief provide, most brokers anticipated rents—already at document highs—to proceed climbing, additional squeezing tenants in a extremely aggressive market.
