The UK housing market is witnessing a promising recovery following the Autumn Budget, reflecting unexpected resilience.
- A majority of estate agents reported increased sales in October compared to September, driven by concerns over potential tax changes.
- Buyer inquiries have risen for the fourth month in a row, aligning with a steady increase in new property listings.
- Although house prices are beginning to rise, a recent post-budget rise in bond yields could pose short-term challenges.
- The rental market remains tight, with decreasing landlord instructions pushing rents to record highs and adding pressure on tenants.
The UK housing market has shown surprising resilience post-Autumn Budget, as revealed by the Royal Institution of Chartered Surveyors (Rics) survey, which noted increased sales and a positive market sentiment. Agents indicated a significant rise in transactions as buyers rushed to close deals before possible tax hikes. “We have had a wave of exchanges and completions,” said Simon Milledge of Jackson-Stops, highlighting the influence of pre-budget anticipation.
October saw a noticeable surge in buyer activity, partly fueled by media speculation surrounding tax increases and easing mortgage rates. John King from Andrew Scott Robertson emphasized these factors contributed to the heightened market activity, reflecting a temporarily heightened market state.
Despite a slight pre-budget slowdown, the market rebounded, with 34% of agents expecting a continued rise in sales over the next three months. There is a pervasive optimism that this upward trend will extend into the next year, boosted by sustained interest from potential buyers and an uptick in property listings.
Interestingly, 16% of respondents noted an increase in house prices, shifting from the previous perception of static pricing. The momentum in buyer demand has been crucial, translating into more agreed sales and an overall positive outlook for the near future.
In contrast, the rental sector faces significant pressure due to limited property availability. A net 29% decline in landlord listings, the most significant drop since 2021, has compounded the challenge for tenants. With rental homes scarce, rents are expected to keep climbing, placing additional strain on those seeking housing.
The housing market’s post-budget recovery exhibits significant promise, yet potential short-term challenges remain due to economic factors.
