House prices across UK in October: RICS

The buyer demand balance for the new buyer enquiries showed +12% in October (little changed from +13% previously) - meaning a fourth consecutive month of positive indicators for buyer demand and a modest upward trend. 

For agreed sales, an aggregate net balance of +9% of respondents reported an increase in sales volumes over the latest survey period, up from a figure of +5% recorded last month.Despite having remained below zero throughout much of the previous two years, this now marks the third positive reading - which RICS says 'signal a modest improvement, rather than a sharp upturn' at this stage. 

Alongside this, a headline net balance of +16% of survey participants reported a rise in house prices over the October survey period. This is up from readings of +11% and zero in September and August respectively, and is consistent with house price growth gaining momentum steadily in recent months: when disaggregated, Northern Ireland, Scotland, the North East, North West, and London all exhibit firmly positive net balances for the house price metric.

A rising share of respondents to RICS' survey are now of the opinion that house prices will continue to drift higher over the coming three months.

Emma Cox, MD of Real Estate at Shawbrook comments: 

“Despite uncertainty in the run up to the Budget, optimism continued to encourage new buyer enquiries and sales figures to grow in October as aspiring and current homeowners look to tie up transactions before the end of the year. With the stamp duty relief for first time buyers not being extended into the new tax year in the Autumn Budget, we can expect this to continue with first time buyers keen to complete prior to the end of March."

“The new Government has reiterated the importance of a healthy property sector and there continues to be a clear need for a professional private rental sector in the UK. Therefore, we hope to see the Government working with professional landlords to support them to invest in their properties in order to continue to offer quality, energy efficient accommodation for our nation’s private renters.