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RICS Residential Market Survey August 2024

Key Takeaways

Buyer enquiries and agreed sales stabilise

  • The August 2024 RICS Residential Survey results show an improvement in sales market activity over the month, supported by the recent softening in mortgage interest rates.
  • Respondents expect the market to gradually gain momentum, although the near-term outlook for monetary policy remains tight.
  • New buyer enquiries posted a net balance of +15%, up from +2% previously, marking the most positive reading for this indicator since October 2021, though it is from a low base.
  • Agreed sales indicator posted a net balance of +6%, up from -1% previously.
  • Near-term sales expectations suggest further improvement, with a net balance of +37% expecting an increase in sales volumes over the next three months.
  • The twelve-month outlook remained stable, with a net balance of +45% of respondents foreseeing stronger sales over the next twelve months.

New instructions rise slightly

  • New instructions indicator returned a net balance of +7 up from +3% in July, indicating a modestly positive trend in the flow of properties being listed for sale.
  • Market appraisals were up, with a net balance of +23% of contributors reporting an increase compared to a year ago, indicating a relatively solid near-term supply pipeline.

House prices move out of negative territory

  • The national house price indicator moved into positive territory, with a net balance of +1% in August, up from -18% in July. This marks the first positive reading since October 2022.
  • Near-term price expectations improved, with a net balance of +14%, and a net balance of +50% of respondents anticipate higher prices over the next twelve months, up from +46% last month.

Rental market

  • Tenant demand rose slightly in August, with a net balance of +11%, though this was softer than the +26% recorded in July.
  • New landlord instructions continued to fall, with a net balance of -21%, indicating a deteriorating supply in the rental market.
  • Near-term rental price expectations remained strong, with a net balance of +39% anticipating further increases in rental prices.

Housing Market picks up in August 2024- 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%). Source: RICS

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