The UK housing market showed unexpected resilience in October, with estate agents reporting higher sales, more buyer inquiries and a brighter outlook following the autumn budget.
Despite pre-budget concerns, the housing market performed better than expected, according to the latest research from the Royal Institution of Chartered Surveyors (Rics). Of the 269 real estate agents surveyed, a majority reported more sales in October than in September, driven in part by buyers trying to complete transactions ahead of potential budget-related tax changes.
Although some officers perceived a slowdown in the weeks leading up to the October 30 budget, the general sentiment was optimistic. “We have had a flurry of exchanges and completions, probably driven by a desire to exchange ahead of the Budget,” says Simon Milledge of Jackson-Stops in Blandford Forum, Dorset.
Similarly, John King of Andrew Scott Robertson in Merton, south-west London, attributed the surge in activity in October to a combination of media reporting on possible tax rises and the easing of mortgage rates.
Ian Perry of Perry Bishop in Cheltenham, Gloucestershire, commented: “[There was] a little pause before the budget, but the market [is] now perking up again.”
Looking ahead, 34 percent of agents expect to sell more homes within three months, with even more confidence about activity levels next year.
The survey also found that buyer inquiries continued to rise for the fourth month in a row, alongside an increase in new listings, creating what the Rics describe as a “relatively solid” near-term pipeline. Reflecting this recovery, 16 percent of respondents believed that home prices were rising, a significant shift from two months ago when prices were considered static.
Tarrant Parsons, head of market analysis at the Rics, highlighted the momentum: “The recent improvement in buyer demand is translating into growth in the number of agreed sales. The forward-looking sentiment suggests that this more positive trend will continue in the coming months.”
However, he warned that a post-budget rise in bond yields, which affects mortgage rates, could pose challenges in the short term.
In the rental market, tenant demand remained robust over the summer, but supply constraints increased. A net of 29 percent of letting agents reported a decrease in instructions from landlords, which is the most negative outcome since the end of 2021.
With the supply of rental properties in short supply, most agents expect rental prices – already at record highs – to continue to rise, putting further pressure on tenants in a highly competitive market.