UK housing market still cautious RICS says
EditorialRoom 13th April 2023

House prices in the UK are expected to continue to drop despite surveyors’ expectations that the housing market will stabilise over the next 12 months, the Royal Institution of Chartered Surveyors’ (Rics) monthly survey has shown.
The study which measures the proportion of surveyors reporting new buyer inquiries against those saying they fell, shows a score of -29% for surveyors reporting a fall in demand in March, almost flat on the -30% recorded in February. A minus score means there was a higher proportion of surveyors reporting a fall than a rise.
The survey findings also show agreed sales slipped to -31%, down from -25% in February, although still less negative than the -43% reported last October in the wake of Liz Truss’ disastrous mini-budget.
Near-term expectations point to sales remaining under pressure over the next few months, returning a net balance of -29%. Nevertheless, this is less downcast than the reading of -45% posted in February. House prices continue to dip, evidenced by a headline net balance of -43% of respondents reporting a decline in the latest results.
“The overall tone of the feedback received from respondents to the latest RICS Residential Market Survey is still one of caution towards the sales market which is reflected in both the headline price and activity indicators. Deals are being done, but a theme coming through in the anecdotal remarks is the need for vendors to recognize the shift in market dynamics”
Simon Rubinsohn, RICS Chief Economist, commented. “Significantly, there is also a sense that the medium-term outlook is looking a little more settled, helped by the perception that the interest rate cycle may be near the peak.”
Housing market experts have been warning of a slowdown since the Bank of England began raising interest rates.
The RICS UK Residential Market Survey is a monthly sentiment survey of chartered surveyors who operate in the residential sales and lettings markets. Surveyors are asked 18 questions on a range of metrics such as sales, enquiries, listings and house prices and are asked whether these have increased, stayed the same or decreased.