Property surveyors report that the housing market in Britain rebounded further in September 2024, with increases in house prices, sales, and enquiries.
However, pressure on the rental sector grew as the number of available rental properties did not keep up with the demand from tenants.
The primary house price balance, which gauges the difference between surveyors’ observations of increases and decreases in home prices, entered positive territory for the first time since October 2022, according to a statement released by the Royal Institute of Chartered Surveyors.
Its house price balance increased to +11 in September following a revised reading of zero in August, significantly exceeding the +4 economists’ prediction in a Reuters poll.
In the upcoming year, with a net balance of +54 surveyors predicted an increase in house prices, which is the highest reading since April 2022.
As compared to a year ago, a measure of expected sales for the next 12 months increased to a net balance of +45.
According to Tarrant Parsons, head of market analytics at RICS, buyer demand has rebounded as a result of the August reduction in borrowing costs.
“A further unwinding in monetary policy is anticipated over the months ahead, which should create a more favourable backdrop for the market moving forward,” Parsons said.
The Bank of England’s benchmark bank rate was cut for the first time in four years in August, and it currently stands at 5%. Rates were held steady by the British central bank in September 2024. However, investors In October put the likelihood of a quarter-point cut on November 7 at about 83%.
A rebound in the British housing market has also been indicated by other measures, partly due to anticipation of another rate cut by the Bank of England.
The data released by mortgage lender Halifax revealed that the annual growth rate of house prices in September 2024 was the highest since late 2022.
According to RICS, some homeowners are listing their properties in anticipation of a potential increase in capital gains tax in the first budget of the incoming Labour government later in October 2024. However, this is also contributing to a shortage of available rental properties.