Over the next three months a net +20 of surveyors anticipate a recovery in residential sales, highlighting the positive effects of Labour’s landslide election victory, the RICS UK Residential Survey has found.
Optimism increased from last month, when just a net +10 expected a recovery.
Looking at price expectations over the next 12 months, a net balance of +54 reckon they will continue to rise.
Tarrant Parsons, RICS senior economist, said: “Although activity across the housing market remained subdued last month, forward looking aspects did improve slightly.
“There are some factors emerging now that could support a recovery in the months ahead. If the Bank of England does decide that the current inflation backdrop is benign enough to start loosening monetary policy next month, this may prompt a further softening in lending rates. In addition, the recent election delivered a clear outcome, with housing pushed up the political agenda.”
Looking across to the rental market, a net balance of +28 saw a pick-up in tenant demand during June.
Meanwhile, the new landlord instructions net balance slipped from -3 to -11, pointing to a renewed decline in new rental listings.
Looking forward, a net +38 anticipate that rental prices will rise over the coming three months.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “The election had limited impact on our buyers and sellers, not just because the outcome had been largely factored in but the pace and level of mortgage rate reductions was much more relevant.
“Over the past month and particularly since the result, we have seen a rebound in confidence and activity.
“However, we are not getting carried away as the increased choice and continuing economic concerns will keep the higher price aspirations of homeowners in check.”
