Latest UK residential survey shows positive buyer demand and sales expectations continuing

Buyer demand and sales expectations in the UK housing market are continuing to improve, according to the Royal Institution of Chartered Surveyors (RICS). 

The latest UK residential survey showed little change in October, with a net score of +12% for new buyer enquiries in the month only marginally less than the +13% recorded previously.  

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This extended the run of positive readings for the series into a fourth consecutive month.

On the agreed sales front, an aggregate +9% of respondents reported an increase in sales volumes over the most recent survey period, up from +5% last month.

After two years of below zero recording for this indicator, October marked the third successive reading in positive territory.

A net balance of +16% reported a rise in house prices over the survey period, while the October net balance of +14% for new instructions was the fourth positive reading in a row.

The near-term sales expectations series posted a net balance of +34% in October, up from +22%.

Commenting on the latest survey, Emma Cox, managing director of real estate at the bank Shawbrook, 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.

RICS UK Residential Market Survey explained  

The RICS UK Residential Market Survey is a monthly sentiment survey of chartered surveyors who operate in the residential sales and lettings markets. 

Surveyors are asked 18 questions on a range of metrics such as sales, enquiries, listings and house prices and are asked whether these have increased, stayed the same or decreased.  

The ‘net balance’ refers to the proportion of respondents reporting a rise in a metric minus those reporting a fall.   

For example, if 30% reported an increase in buyer enquiries and 5% reported a fall, the net balance would be +25%.