House prices in Wales accelerated at the fastest rate seen since 2022 and there was a firm uplift in the number of newly agreed sales during June according to the latest Royal Institution of Chartered Surveyors (RICS) residential market survey.
A net balance of 27% of surveyors in Wales report that house prices rose through the second quarter of the year. This is the highest this balance has been since August 2022, and the third highest balance seen across all UK regions after Northern Ireland and the North West of England.
Newly agreed home sales also rose firmly, with a net balance of 59% of surveyors in Wales reporting that sales increased through June, up from a negative balance in May.
On the demand side, a net balance of 4% of survey respondents in Wales reported that new buyer enquiries rose through June. This is compared to the -6% and 5% that were seen in the two surveys previous.
However, there was a slowdown in the rate at which properties were are coming onto the market, the report suggests. A net balance of 4% of surveyors in Wales report that new instructions to sell rose in June. Whilst this is the fourth consecutive month that this balance has been in positive territory, it is down from the 48% and 28% that were seen in the May and April surveys.
This slowdown in the rate at which new instructions are happening perhaps explains respondents’ cautious outlook.
A net balance of -20% of Welsh respondents anticipate that prices will ease back over the next three months, down from -3% that was seen in May’s survey. And a net balance of -33% of Welsh respondents anticipate that sales will fall through the third quarter of the year.
Regarding the rental market, Welsh surveyors report that both tenant demand and landlord instructions fell flat through June. Subsequently, surveyors in Wales expect rents to be flat through the next quarter of the year.
Commenting on the UK picture, Tarrant Parsons, RICS Head of Market Research & Analysis, said: “The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility. The earlier distortion caused by transactions being brought forward ahead of the Stamp Duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge.
“Encouragingly, near-term sales expectations have begun to edge higher, pointing to a modest shift in sentiment. That said, confidence in the market remains somewhat delicate, with economic uncertainty at both the domestic and global level still seen as a potential headwind.“
