The figures from the Rics added to recent signs of stabilisation in the UK’s housing market, driven by cooling inflation and lowering mortgage costs after their rise hit demand in 2022 and much of 2023
Britain’s housing market last month saw the strongest levels of interest among buyers in over two years and a gauge of house prices also hit its highest since 2022 as a recovery gathered more momentum, a survey showed on Thursday.
The figures from the Royal Institution of Chartered Surveyors (Rics) added to recent signs of stabilisation in the UK’s housing market, driven by cooling inflation and lowering mortgage costs after their rise hit demand in 2022 and much of 2023.
Rics’ gauge of buyer enquiries showed a net balance of +8 in March, the strongest data since February 2022 and up from +4 in February.
Its measure of house prices, while still showing more expectations of price declines than rises, reached its highest since October 2022 at -4, up from -10 in February and a low of 67 in September last year.
Demand continues to recover gradually across the United Kingdom’s housing market, according to Tarrant Parsons, senior economist at Rics. This should continue to support the market to a certain degree going forward.
The survey showed an growing number of surveyors expect house prices will increase in the next 12 months, across all parts of the United Kingdom.
According to Bank of England data published last week, the highest number of mortgage approvals in February since September 2022.
House prices, as measured by official statistics, are nearly 20% above their level before the COVID-19 pandemic – reflecting big rises seen in many other advanced economies – although they have moved in a narrow range since the spring of 2022.