UK house prices up for 1st time since 2022 – RICS

UK house prices have started to rise for the first time since October 2022, according to the latest RICS Residential Survey for August 2024.

The survey reveals a positive shift in the housing market, driven by a recent decrease in mortgage interest rates. House prices now show a net balance of +1, signalling a recovery after nearly two years of decline.

Buyer demand and sales activity are up, and industry experts expect further growth as the year progresses.

New property listings have modestly increased (+7), enhancing options for prospective buyers. However, near-term rental price expectations remain high, with a net balance of +39 anticipating rent hikes in the coming months.

RICS Chief Economist Simon Rubinsohn noted improved sentiment but cautioned about ongoing affordability issues and uncertainty around future interest rate cuts and the upcoming budget.

The rental market continues to struggle with reduced rental stock and landlords scaling back portfolios, exacerbating existing market imbalances.