A measure of expected sales for the next 12 months rose to a net balance of +45, compared to +3 a year ago.

 

Tarrant Parsons, RICS’ head of market analytics, said the reduction in borrowing costs in August had helped to recover buyer demand.

 

“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 now sits at 5 per cent after August’s first reduction in borrowing costs in four years.

The British central bank kept rates on hold last month. But investors on Wednesday assigned a roughly 83 per cent chance of a quarter-point cut on Nov 7.

 

Other gauges of Britain’s housing market have also pointed to a recovery, helped by expectations of another interest rates cut by the BoE. Figures from mortgage lender Halifax on Monday showed house prices grew in September at the fastest annual pace since late 2022.

 

RICS said that a potential rise in capital gains tax in the new Labour government’s first budget later this month was prompting some homeowners to list their properties but that this was contributing to a lack of supply for renters.

 

In the lettings market, demand continued to tick up and rents are projected to rise over the coming months.

 

Finance minister Rachel Reeves has warned some taxes will have to go up in her inaugural Oct 30 budget.

First Published: Oct 10 2024 | 9:25 AM IST