October was a busier month for the housing market in Wales as new buyer enquiries increased after a downturn in September, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey.
A net balance of 19% of Welsh respondents said that new buyer enquiries rose through October according to the report compared to -45% the previous month.
Meanwhile, a net balance of 5% of surveyors in Wales report that house prices rose over the past three months. This is the second consecutive month this balance has been in positive territory, and up from 3% in September.
Surveyors do remain cautious on the pricing outlook, but less so than seen previously. A net balance of -4% of Welsh surveyors expect prices to fall over the next three months, up from -28% in September.
Regarding sales, Welsh surveyors report that sales rose through the month of October, with a net balance of 25% of respondents reporting an increase. But on the supply side, a net balance of -18% of respondents in Wales noted a fall in new instructions to sell.
Perhaps unsurprisingly, therefore, given the supply constraints, respondents in Wales are hesitant on the sales outlook, with a net balance of -19% expecting sales to fall over the next three-month period.
Looking at the lettings market, tenant demand rose as the fastest rate seen since late 2022, as a net balance of 83% of surveyors report a rise in demand for rental properties in Wales. Regarding supply, a net balance of -33% of respondents report a fall in landlord instructions. With the imbalance of supply and demand, a net balance of 67% of Welsh surveyors expect rents to rise over the next three months.
Commenting on the sales market, David James FRICS of James Dean in Brecon said: “October was a good month for sales although purchasers are careful.”
Discussing the lettings market, David Cook MRICS in Maesycwmmer added: “There is ongoing pressure on landlords which will result in increased property sales.”
Commenting on the UK picture, RICS Head of Market Analysis, Tarrant Parsons, said: “The UK housing market saw a continued pick-up in activity through October, with the recent improvement in buyer demand translating into growth in the number of sales being agreed. Just as importantly, forward-looking sentiment points to this brighter trend remaining in place of the coming months. That said, the rise in bond yields following the Budget, alongside a general increase in financial market implied interest rate expectations over the past couple of weeks, will likely present something of a headwind for the market to contend with over the short term.”
