The latest RICS Residential Survey for October claims that headline house growth appears to be regaining momentum, while new buyer enquiries remain positive.
In terms of buyer demand, the headline net balance for the new buyer enquiries gauge registered a reading of +12% in October (which previously stood at +13%).
This is the fourth consecutive month buyer demands has increased – although the latest reading indicates there is a modest upward trend in demand.
For agreed sales, an aggregate net balance of +9% of respondents reported an increase in sales volumes over the latest survey period, up from a figure of +5% recorded last month.
This figure had sat below zero for the past two years, and the latest reading is the third successive month it has produced a positive outcome.
However, at this stage, the figures point towards a modest improvement rather than a sharp upturn. Near-term sales expectations predict a net balance of +34% in October, up from a figure of +22% beforehand.
A net balance of +36% of contributors predicts sales volumes will rise over the next 12 months, which is slightly more moderate than the reading of +44% seen in September.
Commenting on the latest data, north London estate agent and a former RICS residential chairman Jeremy Leaf said: “Even though the recent cut in interest rates is now likely to be repeated later rather than sooner, market sentiment remains positive.
“New buyer enquiries are on the up and more sales are being agreed but progress is slow, particularly due to improving stock levels.
He added: “Some first-time buyers are looking to take advantage of investors withdrawing from transactions due to recent rises in stamp duty and before their own liability for the tax increases next April.”
Shawbrook managing director of real estate Emma Cox said: “Despite uncertainty in the run up to the Budget, optimism continued to encourage new buyer enquiries and sales figures to grow in October as aspiring and current homeowners look to tie up transactions before the end of the year.
“With the stamp duty relief for first time buyers not being extended into the new tax year in the Autumn Budget, we can expect this to continue with first time buyers keen to complete prior to the end of March.”
