2020.08.1309:28:00UTC+00UK Housing Market Recovery Gains Further Momentum: RICS

UK housing market recovery gained further momentum in July as the stamp duty holiday helped to boost demand, survey data from the Royal Institution of Chartered Surveyors, or RICS, showed Thursday. Nonetheless, respondents were cautious on long term prospects.

A net balance of 75 percent of survey participants reported an increase in buyer enquiries in July. Enquiries bounced again following the lockdown induced fall seen during March to May.

Similarly, new instructions being listed onto the sales market climbed notably, as a net 59 percent reported a growth compared to a net 41 percent in June.

Further, a net balance of +57 percent of respondents nationally posted a rise in agreed sales over the month.

Looking ahead, near term expectations were signaling continued growth in sales over the next three months, with a net balance of +26 percent of contributors anticipating an increase.

But twelve-month sales projections remained negative at 10 percent as caution remained over the reaction of the market once the furlough scheme is phased out in October and the stamp duty holiday expires after March 2021. The survey showed that a net balance of +12 percent of respondents reported an increase in house prices in July versus -13 percent in June. Further, a net 8 percent of contributors expect prices to rise over the next twelve months.