Home sales continue to soar as buyers keen to move despite rates hike
Home sales surged last month with strong demand from buyers not letting up, even in spite of an uplift to increase rates.
The latest RICS Residential Market Survey reported a net balance of nine per cent more respondents saying sales were increasing. This represented the strongest reading since May 2021.
The survey also reported a 17 per cent increase of respondents reporting an uplift in new buyer enquiries.
The housing market has experienced historically low stock levels, driving house price growth.
In a three month forecast, RICS said it anticipates sales to continue rising but at a more modest pace.
Tom Bill, head of UK residential research at Knight Frank, said he believed the market was experiencing “the final few months” of double-digit house price growth “before supply picks up and demand begins to fray around the edges.”
He added: “UK house prices have been skewed by a lack of supply in recent months but the shelves are gradually re-stocking, a process accelerated by the arrival of spring. Meanwhile, higher inflation and rising mortgage rates will begin to put the brakes on sky-high demand. It won’t happen overnight but I would expect the return of single-digit house price growth later this year.
“While the Bank of England may adopt a more risk-averse approach to raising the base rate given the geopolitical uncertainty, mortgage rates are still playing catch-up and lenders are likely to keep withdrawing their best products.”