The UK’s residential property sector brightened slightly in July, according to the latest RICs survey, with average mortgage rates lowering slightly during the month as the market anticipated a rate cut by the Bank of England.
This has improved positivity in the sector, but the full impact of the central bank cut and the UK government’s announcements on housing reform will not be evident until next month’s report, RICs added.
New buyer enquiries picked up a little in July, with more buyers looking to buy a home — a result of +2%, up from -6% last month. Whilst still broadly flat, also it is the first time in four months there has been a positive numbers of buyers looking to enter the market.
In the rental market, the gap between demand and supply continued to widen. Demand continued to rise modestly, with a +18% net balance figure reported this month, while sentiment towards landlord instructions stood at -16% net balance. Whilst the growth rate of the gap reduced a touch, the continued movement indicates likely further rental price rises for the foreseeable future.