There are increasing signs that the downward trend in residential property sales and new home buyer inquiries will ease in the coming months, RICS’ latest survey shows.

A net balance of 14% of property professionals reported new buyer inquiries falling rather than rising in November, the study carried out by RICS revealed.

Across the survey, a net balance of 11% of property professionals reported sales falling rather than increasing last month, slowing from a balance of 23% who reported this in October.

Across the UK, feedback is mixed regarding new buyer inquiries, which are on the increase in the North West of England and Northern Ireland, the report said.

Across the survey, a net balance of 11% of property professionals reported sales falling rather than rising in November, slowing from a balance of 23% who reported this in October.

Looking ahead, professionals’ sales expectations for the next three months improved, with a balance of 6% expecting to see an increase rather than a fall in transactions, marking the first positive reading since early 2022.

The report said: “Nevertheless, with this figure being only marginally positive, the expected recovery in sales volumes over the coming three months is relatively modest.”

A net balance of 24% of surveyors expect sales to be higher in a year’s time – marking the most upbeat reading on this measure since January 2022.

The survey also pointed to house prices continuing to fall, although Rics said sentiment has improved over the past three months.

The report said: “Disaggregating the data shows that the vast majority of regions have seen the pace of house price declines ease to some degree (in net balance terms), although the South East and East Midlands continue to return deeply negative readings.

“Bucking the broader trend entirely, respondents have cited a clear upward move in house prices across Northern Ireland in recent months.”

In the lettings market, tenant demand continues to rise, although the survey results suggest the increase has slowed.

With demand continuing to outweigh supply, RICS said rents are projected to rise by close to 4% over the next year.

RICS chief economist, Simon Rubinsohn, commented: “The latest RICS residential market survey provides further evidence that sentiment is a little less negative than previously was the case with, critically, the new buyer inquiries indicator finally beginning to stabilise.

“This is being aided by increased confidence that the interest rate cycle has peaked, which is reflected in somewhat more competitive mortgage products coming to the market.

“However, with the cost of money likely to remain elevated for some time to come and the economic outlook still downbeat, it is not surprising that the overall tone to the anecdotal remarks from survey respondents is still quite cautious.”

Reflecting on the latest data from RICS, Tom Bill, head of UK residential research at Knight Frank, said: “Strong wage growth is normally positive for the UK housing market but not this year. As inflation falls and borrowing costs stabilise, the unusual result is that November was more active than September in the property market.

“Speculation is turning to the timing of a bank rate cut rather than the size of the next rise, providing a boost to sentiment that means transaction volumes should be higher over the next six months than the last six. The key uncertainty now is political ahead of a general election next year. Not only the uncertainty of when it will be called but a familiar question of whether the government will be forced into action sooner rather than later due to internal divisions.”

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