Sales activity in the Welsh housing market continued to rise the final month of 2024 according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, however surveyors remain hesitant on the pricing outlook through the early stages of 2025.
A net balance of 9% of respondents in Wales reported that sales rose through the final month of 2024, which is just above the UK average of 7%. Looking ahead, Welsh surveyors are positive about sales heading into 2025, as a net balance of 9% of respondents expect sales to rise through the first quarter of the year, up from the 3% seen in November.
When it comes to pricing, a net balance of 9% of surveyors in Wales reported that house prices rose through the final quarter of 2024. However, looking forward, a net balance of -11% of Welsh respondents anticipate that prices will edge back in the first three months of the new year.
On the demand side, a net balance of 9% of surveyors in Wales report that new buyer enquiries rose through the month of December, and although down from 24% in November, it is the third consecutive month this balance has been in positive territory.
Regarding supply, a net balance of 18% of Welsh respondents reported a rise in new instructions to sell, a similar balance to what was seen the month previous.
Looking at the lettings market, survey respondents in Wales report that tenant demand fell flat through December, whilst a net balance of -20% of surveyors note that landlord instructions fell. In saying this, a net balance of 20% expect rents to rise through Q1 2025.
Commenting on the sales market, Anthony Filice, FRICS of Kelvin Francis Ltd., in Cardiff said: “Activity in December was better than expected, with a good number of sales being agreed. An increased number of first-time buyers was observed and a good number of vendors were either listing for sale or preparing to in the new year.”
Commenting on the UK picture, RICS Chief Economist, Simon Rubinsohn, said: “The latest results from the RICS Residential Market Survey points to a further improvement in sentiment in the housing market despite concerns about the potential impact of rising bond yields on borrowing costs. Buyer enquiries rose once again, albeit at a slower pace than in November, and the headline price indicator also moved higher.
“More significantly, the signals from the survey around expectations over the next twelve months also remain solidly positive for now. However, the resilience of the uplift in market mood could be tested if the mortgage rates do begin to climb in a material way over the coming months. That, critically, would also be a concern for developers who will want to see a solid market as a backdrop for ramping up housebuilding to help meet the government’s ambitious 1.5 million homes target for this parliament.”
