Its latest UK Residential Market Survey recorded a net balance of +16% for house prices overall, with almost all regions reporting growth
The UK residential property market continued to show signs of strength in October, with house prices rising and buyer demand holding steady, according to the RICS.
Its latest UK Residential Market Survey recorded a net balance of +16% for house prices overall, with almost all regions reporting growth. The exceptions were Yorkshire and the Humber, and the South West, which saw price drops of -23% and -4%, respectively.
New buyer enquiries posted a net balance of +12%, marking the fourth successive month of growing demand, reinforcing the upward price trend across most of the UK.
Looking ahead, survey respondents showed increased confidence in further price growth over the next three months, with expectations rising to +20% from +12% in September. Almost all regions are projected to see price gains over the coming year, with particularly strong growth expected in Northern Ireland and Scotland.
In the rental market, however, the gap between supply and demand remains a challenge. Tenant demand rose with a net balance of +19% over the three months to October, while new landlord instructions continued to drop, reaching a net balance of -29% — the lowest level since late 2021. This shortage of available rental properties has led to a forecast of higher rental prices, with 33% of respondents expecting rents to increase over the next quarter.
October’s results were shaped in part by anticipation around Rachel Reeves’ Autumn Budget, which prompted a rise in bond yields that could weigh on the housing market in the months ahead. Respondents in several regions emphasised the need for “competitive pricing” to maintain sales activity in a potentially challenging financial environment
RICS president Tina Paillet noted that the BoE’s recent interest rate decisions could provide further support to the sales market. However, she warned that the expiration of the current higher stamp duty threshold in spring 2025 may drive a short-term rush among buyers, likely followed by a market slowdown once the deadline passes.
Our data continues to indicate that renters are feeling the pressure from a limited supply of rental properties and rising rents, she said. The Autumn Budget’s immediate stamp duty increases for landlords acquiring rental properties may increase opportunities in supply for owner-occupiers, but it will make it more challenging to address the critical shortage of rental homes.