A net 10% increase of RICS surveyors expect the sales market to pick up in the next three months, demonstrating optimism in the sector.

Things are more positive looking further ahead, as a net 30% reckon sales activity will improve 12 months from now.

It’s likely this renewed positivity was buoyed by the Bank of England’s recent base rate cut to 4.5%, as cheaper mortgages will serve to encourage more buyers to the market.

Tom Bill, head of UK residential research at Knight Frank, said: “Downwards pressure on mortgage rates has increased slightly over the last month as inflationary jitters ahead of Donald Trump’s inauguration recede.

“Supply has been relatively strong as sellers decide to act after the political disruptions of 2024 and ahead of April’s stamp duty increase.

“The return of sub-4% mortgages would strengthen demand, which means a lot hinges on how much financial headroom the government can find and how the UK fares as global trade wars escalate.”

House prices continue to rise across the country, with +22% net balance responses indicating rises over the month. Northern Ireland and the North West of England are seeing the strongest momentum at present.

Price growth seems more modest across Yorkshire & the Humber and the South East for the time being.

RICS members firmly believe that house prices will continue to rise across the country over the next twelve months (+55%).

Tarrant Parsons, head of market analytics at RICS, said: “The latest survey feedback indicates that growth in buyer demand lost a bit of momentum through the early part of the year, with this flatter picture likely linked to the turbulence seen across money markets in the first half of January.

“Nevertheless, moving forward, respondents continue to envisage a slightly positive near-term outlook for sales activity. This should be further supported by the unwinding of some of the pressures around mortgage interest rates over the past couple of weeks.”

Via @PropertyWire