Housing market activity picked up in October – surveyors’ report

A net balance of 16% of property professionals reported house prices rising rather than falling in October, the Royal Institution of Chartered Surveyors (Rics) said.

Yorkshire and the Humber, and the South West of England were the only parts of the UK where property professionals reported seeing prices fall overall.

A net balance of 12% of professionals saw fresh buyer inquiries increase rather than decrease in October.

Looking ahead, a balance of 20% of professionals expect house prices to rise rather than fall over the next three months, with those in Northern Ireland and Scotland appearing the most confident in seeing price increases.

In the rental market, the number of tenants seeking homes is continuing to rise, while the number of new instructions from landlords to make properties available to rent continues to decrease, the report found.

A net balance of 33% of professionals expect rental prices to be driven higher over the coming three months, due to the mismatch between supply and demand, Rics said.

Tina Paillet, president of Rics, said: “Our data continues to indicate that renters are feeling the pressure from a limited supply of rental properties and rising rents.”

Rics head of market analysis Tarrant Parsons said: “The UK housing market saw a continued pick-up in activity through October, with the recent improvement in buyer demand translating into growth in the number of sales being agreed.”

Tom Bill, head of UK residential research at Knight Frank, said: “The Budget removed some uncertainties for buyers and sellers but created others.

“While there is now clarity around stamp duty and capital gains tax rates, we expect house prices and transaction volumes to come under pressure due to rising mortgage costs.

“While we don’t know how successful Labour’s revenue-raising plans will be or the exact shape of the economic policies pursued by the new US president, the trajectory for borrowing costs is unclear.”