The latest RICS survey shows momentum is building across the housing market, according to one analyst, as the findings were well-received across the property and financial industries.
Released on Thursday, the RICS survey found the residential property sector brightened slightly in July, and that the new government’s focus on boosting housing development and the recent quarter point base rate cut have shifted the mood in the sales market
Commenting on the findings, Anthony Codling, managing director of equity research at RBC Capital Markets, said: “The latest RICS survey suggests that now the election is out of the way the housing market is back to business, demand ticked up in July and this momentum is expected to build over the coming months as Labour keeps housing front of mind and mortgage rates start to fall.
“The summer months are typically quieter than most, but the scene is set for an autumn selling season which will lead to the housebuilders building more of the homes our country needs,” he added.
Tom Brown, managing director of real estate at Ingenious, said the data showed that the resilience and appeal of the UK property sector persist.
“In the real estate sector, we’re seeing significant investment capital for assets for long-term rental,” he added. “On account of their scale and buying power, these typically institutional investors face fewer disruptions than owner occupiers or small-scale Buy-to-let investors.”
Emma Cox, MD of real estate at Shawbrook, said attention is now firmly on the new government to meet its ambitious house-building targets. “Beyond jumpstarting activity and offering more options for first-time buyers, increased housebuilding is urgently needed to address the rental market, where demand far exceeds quality stock,” she said.
“The increased focus on housebuilding, while aiming to balance supply and demand, creates a landscape ripe with opportunities for professional landlords to invest, upgrade and strategically position themselves to maximise yields and cater to an eager rental market.”
Sara Palmer, distribution director at The Mortgage Lender (TML), summed up the feeling of many, saying: “After a subdued start to the summer months, activity appears to be picking up. The warmer weather and positive economic forecasts – courtesy of a highly anticipated rate cut in August – helped to boost buyer demand, prompting many in the market to believe that we could start to see an uplift in buyer demand figures towards the autumn season.”