Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

RICS Reports August Housing Market Stabilisation and Rising Rents

Buyer demand and agreed sales in the UK housing market improved from recent lows in August, according to the latest Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey. Despite these improvements, both indicators remained negative, with interest rate uncertainty cited as a likely factor.

Surveyors reported a score of minus 19% for new buyer enquiries in August, which was the least negative reading since January and continued a trend of improved activity over the year. The agreed sales metric was recorded at minus 17%, the least negative since February and a significant improvement from minus 38% in April.

Looking ahead, surveyors gave a reading of minus 3% for agreed sales over the next three months, a more positive outlook than the minus 13% recorded in the previous survey. For sales volumes over the next 12 months, the reading was 6%, up from 3% in July, indicating increased optimism.

House prices are expected to remain muted, with a reading of minus 28% in August, similar to July’s minus 29%. This is an improvement from minus 35% in April. Surveyors expect house prices to fall over the next three months before stabilising over the year. Regional differences were noted, with London’s outlook more negative than the national average, while Northern Ireland saw rises and the North West of England maintained moderate growth.

Property supply remained steady, with new listings broadly unchanged and a score of zero for new instructions, compared to minus 2% in July. Market appraisals softened, with a score of minus 17%, indicating weaker activity than last year.

Lettings Market: Rents Continue to Rise

In the lettings market, the imbalance between supply and demand continued to put upward pressure on rents. The score for tenant demand was 18%, while landlord instructions were negative at minus 14%. More surveyors expected rents to rise in the next three months, with a score of 44%, up from 33% in July. Respondents also forecast rental increases of around 3% on average over the next 12 months.