RICS Residential Market Survey April 2022
Buyer demand steady
- The RICS UK Residential Survey for April shows a net balance of +10% of agents noted a rise in new buyer enquiries, similar to the rise last month.
- Agreed sales fell in April to a net balance of -9% following two consecutive months of growth.
New instructions fall back
- The net balance for new instructions fell back into negative territory in April (-1%) having risen last month for the first time in a year.
- Resultantly, average stock levels on estate agents’ book remained low compared to historical standards.
- The number of appraisals being undertaken over the month was said to be little changed compared to a year ago following rises in recent months.
Prices continue to rise
- At a national level, a net balance of +80% of agents noted a rise in house prices in April, up from 74% last month.
- All parts of the UK continue to report an uplift in prices, with notable rises seen in Northern Ireland and Wales.
Buyer demand continues to outstrip housing supply
Source: RICS
Note: Net balance = Proportion of respondents reporting a rise minus those reporting a fall (e.g. if 30% reported a rise in prices and 5% reported a fall, the net balance will be 25%).
Looking ahead
- Respondents expect house prices to rise further over a three and twelve-month horizon, posting net balances of +24% and +62% respectively, easing on the previous month.
- Near term sales expectations remain positive, with the latest net balance coming in at +12% (from +16% previously).
- Further ahead, twelve-month expectations slowed for the fourth consecutive month recording a negative net balance of -4% in April. A flat trend for residential sales volumes at the national level is expected to continue.
Rental market
- Tenant demand continues to rise with a net balance of +52% of contributors noting an increase in April.
- Landlord instructions remained in negative territory at -7% although this is above the average reading seen over the last year (-17%).
- A net balance of +63% of agents expects headline rents to be higher in three months’ time – a new record high.
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