House Prices Rise for 1st Time in Nearly 2 Years: Surveyors

Easing inflationary pressures and expected further growth are boosting sales activity and buyer demand, according to the latest RICS Residential Survey.
A higher number of surveyors—15 percent—noticed an improvement in buyer demand, while 1 percent of professionals reported prices rising rather than falling in August.
Additionally, 14 percent predict a steady increase in house prices over the next three months.
“The latest RICS survey captures an improvement in sentiment over the past month in the wake of the modest decline in mortgage rates with buyer interest improving, albeit from a relatively low base, and stock levels edging up,” said RICS chief economist, Simon Rubinsohn.
The BoE will set the new interest rate on September 19, having previously said that it will keep a restrictive fiscal policy for as long as it takes for inflation to “sustainably” remain at the 2 percent target.
Meanwhile, the Autumn Budget is expected to include announcements of cuts in the public funds sector, following the government’s discovery of a “£22 billion black hole” in the nation’s finances.
The plans could see more than 10,000 homes built at three “stalled sites”—Stretton Hall in Leicestershire, Tendring in Essex, and Biggleswade Garden Community in central Bedfordshire.
There is still a steady interest from renters, RICS said, although the pace of growth in August slowed compared to the previous months. This coincides with a sluggish supply of rental properties, as landlord instructions are falling again.
“Affordability remains an issue in the sales market even with somewhat cheaper finance now available but the picture appears even more acute in the lettings market where the amount of rental stock continues to diminish. Contributors continue to point to landlords looking to scale back their portfolios which will inevitably increase the imbalance that already exists in the market,” Rubinsohn said.
The rental market will also be affected by government plans to introduce a ban on Section 21 “no-fault” evictions by summer. The plans are part of the Renters’ Rights Bill, which was published and introduced to Parliament on Wednesday.
Labour says that reform of the sector is “long overdue” and plans to improve the current system for both 11 million private renters and 2.3 million landlords in England.