RICS Residential Market Survey February 2025
Key Takeaways
Buyer enquiries and agreed sales soften
- The February survey reflects a mild slowdown in the sales market, with weaker buyer demand and sales volumes.
- New buyer enquiries posted a net balance of -14%, the weakest since November 2023, influenced by the upcoming stamp duty changes.
- Agreed sales registered a net balance of -13%, easing from +2% in January, indicating a reduction in transaction volumes.
- Near-term sales expectations dropped to -5%, with a positive outlook for the next 12 months, as 32% of contributors expect an increase in sales volumes.
New instructions show modest growth
- New instructions recorded a net balance of +12%, an eighth consecutive month of positive readings, albeit a slight easing from January.
- Market appraisals saw a net balance of +16%, indicating continued strength in the pipeline of new listings.
House prices continue rising at a slower pace
- The national house price indicator posted a net balance of +11%, reflecting continued growth but at a slower pace compared to previous months.
- Near-term price expectations moderated, with a net balance of +47%, suggesting optimism for continued price increases over the next 12 months.
- Northern Ireland, Scotland, and the North West reported the strongest price growth, while other regions experienced slower growth.
Rental market
- Tenant demand remained slightly negative, with a net balance of -4%, marking the fourth consecutive month of subdued demand.
- New landlord instructions recorded a net balance of -22%, continuing the trend of limited rental supply.
- Rental price expectations increased, with a net balance of +34% forecasting rents to rise over the next three months.
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