Surveyors less downbeat about the market

Surveyors have seen an improvement in buyer activity in August, according to the latest Royal Institution of Chartered Surveyors residential market survey.

The survey found a net balance of -19% for new buyer enquiries. This means more surveyors (see box below) reported a fall in new enquiries than a rise in August, however it is the least negative reading since January and the fifth successive monthly improvement.

Similarly the score for agreed sales was -17%, the least negative score since February and a significant improvement on April’s score of -38%. 

RICS UK Residential Market Survey explained

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.

The ‘net balance’ refers to the proportion of respondents reporting a rise in a metric minus those reporting a fall.

For example, if 30% reported an increase in buyer enquiries and 5% reported a fall, the net balance would be +25%.

Near-term sales expectations measure improved from-13% to -3% month-n-month while a net balance of +6% of contributors expect sales volumes to increase over the next year, a modest improvement on the +3% reading recorded last month.

The report said: “The results continue to portray a relatively challenging backdrop, with activity indicators still in negative territory, albeit gradually moving off the lows recorded earlier in the year.

“At the same time, the macroeconomic environment remains difficult, with recent changes in interest rate expectations likely to prove unhelpful for any budding recovery across the sales market.

“Nevertheless, forward-looking sentiment points to a more stable picture emerging for activity in the near term, while respondents foresee a slight improvement in sales volumes over the year ahead.”

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