The UK housing market experienced a notable uplift last month, with near-term sales expectations reaching their highest point in four and a half years, according to the latest UK Residential Survey by the Royal Institution of Chartered Surveyors (RICS).
Falling mortgage rates in July have invigorated the sector, reflected in a 2% rise in net new buyer enquiries, rebounding from a 6% decline in June. This marks the first increase in buyer numbers in four months.
Improved sales trends accompanied this resurgence, with the decline in agreed sales easing to a net 2%, following sharper falls of 6% in June and 13% in May.
Looking forward, 30% of RICS survey respondents foresee rising sales over the next three months, the strongest outlook since January 2020. Long-term projections are also positive, with 45% expecting sales increases in the next year, up from 40% in June.
However, house prices continue to decline nationwide, with negative sentiment prevalent across all regions in England.
“The government’s renewed focus on boosting housing development and the recent base rate cut have positively influenced market sentiment,” said Simon Rubinsohn, RICS chief economist. “While significant challenges remain, particularly regarding planning reform, the current policy environment is becoming more supportive for the sector.”
Despite the optimism, Rubinsohn cautioned that the path forward remains uncertain, particularly with the Bank of England’s future monetary policy moves yet to be clarified.