Good news for sellers – the property market is looking a bit brighter! While house prices are still falling, there are signs things might be about to change.

The Royal Institution of Chartered Surveyors (RICS) say a combination of lower interest rates and the government’s plans to boost house building have made buyers and sellers feel more optimistic.

RICS, who speak to estate agents across the country every month, say:

• More people are asking about buying homes. This is the first time in four months estate agents have seen an increase in enquiries.
• Sales are still falling, but not as quickly. The number of homes being sold is still lower than this time last year, but the gap is closing.
• Estate agents are feeling more optimistic. More than half of those asked think sales will increase in the next three months, the highest number since January 2020.
• House prices are still falling nationally, but Scotland and Northern Ireland are bucking the trend with small price rises.
• Rents are still going up. There are still more people wanting to rent than there are properties available, meaning rents are likely to continue to rise.

What does this mean for me?

If you’re thinking of selling, it might be worth waiting a few months to see if prices start to increase.

If you’re a buyer, there’s no need to panic buy just yet, but it might be worth getting a head start on your search.

Expert view

Simon Rubinsohn, RICS Chief Economist, said: “The new government’s focus on boosting housing development alongside the recent quarter point base rate cut does appear to have shifted the mood music in the sales market.”

However, he warned that “significant challenges lie ahead” and that it is “far from clear” that the Bank of England will continue to cut interest rates.