Property professionals are increasingly optimistic about future sales, surveyors have indicated, despite issues in the housing market.
The Royal Institution of Chartered Surveyors (RICS) revealed that a net balance of 25 per cent of professionals anticipate an increase in house sales over the next year, the highest reading since February.
However, RICS' May survey also showed that 26 per cent of professionals reported a decline in new buyer inquiries, marking the fifth consecutive month of decreases, although this figure is slightly less pessimistic than those seen in March and April.
A net balance of 28 per cent of professionals reported a decrease in the number of agreed sales. The survey suggests that sales volumes are generally expected to stabilise rather than decline in the coming three months.
Over the next year, a balance of 34 per cent of property professionals expect house prices to increase.
However, house prices currently appear to be broadly flat, with a net balance of 8 per cent of professionals reporting a fall in prices in May, slightly higher than the 3 per cent reported in April.
There were also signs of more choice for buyers. A net balance of 7 per cent of surveyors saw a rise in new listings, marking the eleventh month of growth in a row.
Valuation activity also picked up, with 19 per cent noting an increase in appraisals compared with a year ago, indicating a potentially more active summer market.
In the lettings sector, tenant demand strengthened in May, while instructions from landlords continued to dwindle. As a result, rents are expected to rise further in the near-term, the report said.
RICS chief economist, Simon Rubinsohn, said the Government’s affordable housing commitments “should provide greater certainty and support more strategic delivery”.
RICS senior economist, Tarrant Parsons, said: “Sentiment across the UK residential property market remains somewhat subdued, with ongoing uncertainty around global trade policies and the dampening effect of transactions being brought forward ahead of the stamp duty changes at the end of March continuing to weigh on buyer activity.
“However, near-term sales expectations are showing signs of stabilisation, suggesting that while muted conditions may persist in the short-term, a further deterioration appears unlikely. Looking ahead, the outlook is more optimistic, with respondents anticipating a gradual recovery in sales activity over the next 12 months.
“That said, the pace and extent of any improvement will partly depend on the Bank of England’s ability to continue cutting interest rates.”
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