Grounds for Optimism in Housing Market Reports
For the first time this year we see a bit of optimism from two commentators on the state of the housing market, with the publication of recent analysis from Rightmove and RICS suggesting it is heading in the right direction, albeit with caveats.
Rightmove first – real-time analysis from the first week of September reveals improved buyer demand across the UK, up by 5%. This is a significant increase on the average of 0.4% in the same period for the last 5 years.
While it’s true that overall buyer demand remains below last year’s level, the stronger than usual start to September reduces the gap, 9% below last year compared to 14% below last year’s level at the end of August.
Caution as always, Rightmove’s spokesman Colleen Babcock is quoted “It’s encouraging to see buyers getting on with their moving plans and returning to the market as we head into the autumn season. However, it is still early in the month, we will be keeping an eye on this over the coming weeks.”
And RICS?
There are also signs of optimism in the monthly sentiment report from RICS with buyer demand and agreed sales lifting from recent lows.
Indicators are not yet in the positive however. The net balance of new buyer enquiries up to -19%, (the best since January and 5th consecutive lift), while agreed sales recorded a net balance of -17%, (the best since February and a significant improvement from April’s low of -38%).
The report expects sales for the next quarter to move closer to neutral territory, with a net balance of -3%, raised from -13% in July.
A modest improvement in confidence is also apparent in the outlook to September 2027, with twice as many respondents anticipating higher sales volumes.
While commenting that these figures highlight a market “gradually finding its footing”, RICS notes the caveat that “headwinds over the shorter term remain pronounced”, and prospects of recovery are fragile and affected by interest rate and global energy market uncertainties.
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