UK house price growth showed improvement towards the end of 2024, with expectations remaining optimistic, as indicated by the Residential Property Survey released by the Royal Institution of Chartered Surveyors (RICS) this Thursday.
In December, the house price balance increased to +28%, up from +24% in November, evidencing a five-month streak of momentum. Nationally, house prices are expected to continue their ascent over three and twelve-month projections, with 53% net of survey participants anticipating a price rise over the coming year.
However, a net balance of 5% reported a rise in buyer inquiries, a decrease from the consistent 11% observed in the previous two months. This December figure suggests a leveling off in buyer demand, according to RICS.
The index assessing the volume of agreed sales saw a slight improvement, rising to +7% from November's +1%. Meanwhile, short-term sales expectations remained somewhat positive with the index decreasing to 16% from 19%. Over a twelve-month period, 37% net of contributors predict increased sales activity.
The new instructions indicator recorded a net balance of +14%, marking the sixth consecutive positive report for this measure.
Simon Rubinsohn, RICS Chief Economist, commented, "The latest results from the RICS Residential Market Survey indicate a stronger sentiment in the housing market despite concerns over the potential effects of rising bond yields on borrowing costs."
While the rise in gilt yields poses potential challenges for the housing market in the coming months, survey respondents remain cautiously optimistic about the medium-term prospects.
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