Good news for sellers – house prices are on the up across the UK for the first time in two years! This is according to the latest Royal Institution of Chartered Surveyors (RICS) UK Residential Survey, which tracks the state of the property market.

Prices Climb as Buyers Return

The survey revealed that prices rose by an average of 16% across the country in September. This follows a period of stagnation, with prices remaining unchanged since August. This positive shift suggests that the market is finally recovering after a two-year slump that began back in October 2022.

However, it’s not a universal boom just yet. Some areas, like the West Midlands, South West, and East Anglia, haven’t seen the same level of growth.

Demand Surges, Fueling Sales and New Listings

The surge in prices is being driven by a welcome return of buyers to the market. The survey found that buyer demand increased for the third month in a row, with a significant 14% rise. This renewed interest has also boosted sales, which saw a smaller but still positive increase of 5%.

What’s more, estate agents are feeling optimistic about the future. 23% believe sales will continue to rise over the next three months, while an even larger 45% predict further growth over the next year.

This positive outlook is further reinforced by a surge in new properties coming onto the market. New listings jumped by a considerable 22%, offering buyers a greater selection. This increase is partly attributed to homeowners wanting to sell before potential increases in Capital Gains Tax (CGT).

Renters Face Continued Squeeze

Unfortunately, it’s not all rosy in the rental market. While demand from tenants remains strong (up by 22% in September), the number of available rental properties plummeted by a worrying 29%. This widening gap between supply and demand makes it even tougher for renters to find a place to live and is likely to push rents even higher.

The shortage is partly due to some landlords choosing to sell their properties, again fueled by concerns over potential CGT changes.

Expert Opinion: More Needs to be Done to Help Renters

Commenting on the findings, RICS President Tina Paillet expressed concern about the challenges faced by renters:

“The RICS survey results continue to highlight the pressures on renters, with demand consistently outstripping supply. While the Renter’s Rights Bill aims to improve standards and offer better protections for tenants, we must ensure that these reforms do not discourage responsible landlords from remaining in the market.”

She added: “Most importantly, the planned changes in the private rental sector fall short of tackling the core issue: increasing supply and making housing more affordable for tenants.”

What This Means for You

• For sellers: Now could be a good time to consider listing your property, as demand is rising, and prices are on the upswing.
• For buyers: Be prepared to face competition as more buyers enter the market.
• For renters: Expect continued challenges in finding a rental property and be prepared for potential rent increases.