UK housing market continues to pick up in September – RICS

The UK housing market continued to show signs of recovery in September 2024, with demand, sales, and new listings returning to growth, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey on Thursday.

Overall demand from buyers rose with a net balance of 14 per cent, marking the third consecutive month of growth, while new listings increased to 22 per cent. National house prices also grew for the first time since October 2022, with a 16 per cent reading.

The outlook also looks broadly positive, the survey added.

The lettings market, however, continues to struggle as tenant demand outpaces supply. Rental listings fell by 29 per cent, leading to higher rents.

RICS President Tina Paillet praised recent housing policy reforms but stressed the need for more supply to address the pressures on renters.

“As we approach the 100-day mark of the new government, it is encouraging to see housing prioritised so strongly. The government has moved quickly to outline ambitious planning reforms and set housing targets aimed at increasing supply. Proposals for new towns, urban expansions, and the creation of ‘greybelt’ land demonstrate a clear commitment to addressing the country’s housing challenges.” Paillet  said.

“Now, it is crucial for developers and investors to feel confident that these reforms will not create planning, skills and resources bottlenecks, so we can make meaningful progress toward the goal of delivering 1.5 million new homes.”

RICS Head of Market Analytics, Tarrant Parsons, noted that the easing of mortgage rates has helped boost buyer demand, with expectations for further growth in sales over the coming months.