Sales challenged rentals strong

RICS released their March 2023 UK Residential Market Survey this week

What RICS said

Metrics on buyer enquiries, agreed sales and new instructions all remain negative

House prices still falling at a national level

Twelve-month sales expectations point to a more stable trend further out

Twindig take

The latest RICS data suggests that for the time being the UK housing market remains in the doldrums with new buyer enquiries, agreed sales and new instructions in negative territory in the survey. 

However, looking one year ahead sales expectations have a positive net balance for the first time since March 2022, which suggests that there is light at the end of the tunnel.

The supply of homes for sale also remains subdued, and the number of market appraisals is lower than it was this time last year. Supply is not going to increase anytime soon.

Turning to house prices, the expectation is for further falls in both the near term and on a twelve-month view. It is perhaps not surprising that stock levels are low as few chose to sell in a falling market. 

The lettings market continues to offer a stark contrast to the sales market with tenant demand up strongly across the country and the expectation of further rent rises to come. RICS members expect to see rental price inflation of around 4% in the coming year.