July’s property market showed a subtle uplift in buyer interest, though sales and the number of new sellers entering the market remained largely unchanged, according to the latest RICS market survey. While house prices continued their downward trend, particularly in East Anglia and Yorkshire & the Humber, real estate professionals are notably optimistic about the coming months.
Stabilising Sales and Prices
The property market is seeing signs of stabilisation, with the Royal Institution of Chartered Surveyors (RICS) noting a small but significant rise in buyer numbers in July. Despite a slight decrease in the number of sales and sellers, agents are the most hopeful they’ve been since January 2020, anticipating that recent falls in house prices will soon decelerate and reverse within the year.
Challenges Persist in the Rental Sector
While there may be a glimmer of hope for homebuyers and sellers, the rental market continues to struggle. The survey highlights a continued decline in landlord numbers, contrasted with a slow but steady increase in tenants. This imbalance is expected to lead to further rent increases, exacerbating the difficulties many renters already face.
Sarah Coles, head of personal finance at Hargreaves Lansdown, comments on the tough environment for renters, “For renters, the outlook is increasingly grim. With landlord numbers dwindling and tenant numbers on the rise, we’re likely to see further rent increases that will deepen the affordability crisis for many.”
Looking Ahead
As the market edges towards a more hopeful outlook, all eyes are on the new government’s next steps, particularly in terms of housing policy and market stimulation. Daniel Austin, CEO at ASK Partners, expresses optimism: “The property market is showing signs of resilience, and we anticipate that the government’s focus on driving construction and unlocking the planning system will give the market a further boost.”
Emma Cox, MD of Real Estate at Shawbrook, also stresses the importance of new government initiatives, “With the government’s ambitious house-building targets, there’s a real opportunity to balance the supply-demand scale, which could rejuvenate both the buying and rental markets significantly.”
This survey paints a picture of a market at a turning point, with potential for growth and improvement in the coming months, contingent on strategic moves by policymakers and sustained interest from buyers and investors.
