A quick look at the latest RICS UK Residential Market Survey (July 2024)

Every month the Royal Institution of Chartered Surveyors (RICS) releases its UK Residential Market Survey, providing valuable insights into the current state of the housing market nationwide.

This blog post is bought to you by our Chairman & Managing Director, John King, FRICS, who offers valuable insights from his experience here at andrew scott robertson in Wimbledon and South West London. He actively contributes his comments to the monthly survey for the London region.

KEY OUT TAKES FROM THE FULL RICS RESIDENTIAL MARKET SURVEY FOLLOWING END OF JULY RESULTS 2024 

Residential Sales Market Insights

House prices

House prices across the UK continued to produce mixed messages. There are hot and cold spots in every region, vendors as well as purchasers face different choices. There are signs of a more positive outlook that will help both camps, mortgage rates have reached a more affordable level, while some growth in house prices is expected during the final quarter of this year. What happens next will depend on tax changes in the Autum Budget and whether we see a further reduction in the bank rate. We are expecting to see more properties come to the market after the summer recess, as families wrestle with their household budgets such as Vat on private school fees being a principal consideration.

Home ownership is a long-term investment, short termism only works in a rising market, if you are selling and buying at the same time, the purchase and selling cost will almost be double, therefore when deciding on your next move, remember why you purchased your current house in the first place it’s a good omen as why your house will appeal to others when selling, you should also have that same feeling when buying.

New instructions

The number of new properties expected to come onto the market has decrease in July. This suggests that vendors are hoping to hear from agents that their property values have risen since early Spring. The level of new listings and market appraisals suggests that sellers are holding steady, neither rushing to list nor pulling back significantly.

In London, as expected there was a slowdown in new instructions, likely due to the summer holidays, which traditionally does cause a dip in activity.

New buyer enquiries
The level of new buyer enquiries has also stabilised, while demand is not surging, the market is no longer in decline. Most agents have noted that buyer activity has quietened due to seasonal factors, but there is more optimism as there are signs that interest rates will reduced further.

Agreed sales
The sales market in and around Wimbledon as elsewhere experienced a solid month as property exchanges often take place more in this month than most others enabling buyers and sellers to use the summer to resettle.  Off market selling is becoming a feature with several vendors now requesting this service when offered. It’s the one feature that will undermine property portals and help return more applicants through agents own doors when seeking that exclusive purchase.

Lettings market

Tenant demand continues to focus on one and two bedroom flats, which remain the most popular choice despite a general slowdown in rental enquiries. The trend of tenants renewing their leases rather than seeking new properties suggests a desire for stability in a market where supply is tightening as more landlords seek to sell before CGT increases as is likely following the Autumn Budget.

For more from the RICS UK Monthly Residential Market survey, you can download and read more 2023/2024 reports here: https://www.rics.org/news-insights/market-surveys/uk-residential-market-survey

Please feel free to reach out to us for personalised advice and assistance in this ever-evolving residential market. Find the right team for your needs here.

Regards,

John King, FRICS

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