UK property market strengthens, pressure on renters intensifies: RICS
Bank of England’s benchmark Bank Rate now sits at 5 per cent after August’s first reduction in borrowing costs in four years | Photo: Pexels
Britain’s housing market recovered further last month, according to property surveyors who said house prices, sales and enquiries rose, but pressure in the rental sector intensified as tenant demand continued to outstrip the number of available homes to rent.
The Royal Institution of Chartered Surveyors said on Wednesday that its main house price balance, which measures the difference between surveyors seeing falls and rises in house prices, moved into positive territory for the first time since October 2022.
Click here to connect with us on WhatsApp
Its house price balance rose to +11 in September after a revised August reading of zero, well above the +4 forecast by economists in a Reuters poll. A net balance of +54 of surveyors expected house prices to increase in the coming year, the strongest reading since April 2022.
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.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Oct 10 2024 | 9:25 AM IST
Related
Big UK pub chains signal price rises as result of…
The pub chain Young’s has said it is preparing to take an £11m annual hit from rises in employer taxes announced in the budget, and signalled that some of th
UK must offer Trump concessions on China to avoid tariffs…
Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.The UK should strike a bargain with
Job cuts ‘inevitable’ over £30m Dundee University deficit
The university currently employs more than 3,000 people.Prof Gillespie told staff: "We must take further action now to address our financial stability and long-
Rachel Reeves faces business backlash over tax-grabbing Budget
Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailGet our free View from Westminster
