UK house prices should return to growth in next year, Rics survey shows

A recent industry survey expects that UK house prices will start to increase again in the coming year thanks to more properties being put up for sale and a rise in buyer interest. The Royal Institution of Chartered Surveyors’ (Rics) monthly report found that in March, property prices stopped their downward trend, which had been happening due to higher interest rates and living costs.According to Rics senior economist Tarrant Parsons, the housing market is slowly picking up, with March marking the third consecutive month of more people looking to buy. With inflation becoming less severe, he anticipates that the Bank of England might reduce interest rates later in the year, improving sales prospects. However, he cautions that the increase in housing market activity is expected to be moderate because mortgage rates are likely to stay higher than they were in 2020 and 2021.

The survey also shows that buyer interest is on the rise, with an 8% net balance of respondents noting more inquiries from potential buyers in March—the most significant jump since February 2022. The supply of houses is also growing, with new listings going up for the fourth month in a row, indicated by a net balance of +13% of survey participants.

The Rics survey is among the key indicators people watch to gauge what’s happening in the housing market. Other reports from Halifax and Nationwide also mentioned that house prices decreased in March. However, official figures suggest that although house prices have been falling since July 2023, there has been some stabilization in the recent months.

Rics’ March survey results show that house prices have levelled out and suggest there may be a rise later in the year. The survey’s findings are optimistic for the next 12 months, with house price growth expected across the UK, especially in Northern Ireland, London, and Scotland.