Buyer demand has increased for the first time in seven months as Brexit “jitters” have started to ease, the latest survey from the Royal Institution of Chartered Surveyors has found.
While the survey found conditions varied across the UK, house prices continued to rise.
New instructions to sell slipped further, with the lack of supply firmly underpinning prices.
Price expectations rose for both the three and twelve month horizons, although both indicators remain softer when compared to the start of the year.
RICS chief economist Simon Rubinsohn says: “The market does now appear to be settling down following the significant headwinds encountered through the spring and summer.
“Buyers do appear to be returning, albeit relatively slowly, but the big issue that continues to be highlighted by respondents is the lack of fresh stock on the market. Although this is not a new story, it is a significant one having ramifications for both prices and the level of turnover.”
He adds: “Central London remains something of an outlier with contributors telling us this is the one part of the market where there may be further give on prices in the near term. Elsewhere the price trend still seems on the up.”
e.surv director Richard Sexton says: “These sentiment results show confidence within the housing market has remained generally resilient.
“The recent figures from CML revealing increases in both remortgage levels and lending, particularly to first-time buyers, are a clear indication that the lending market remains active.
“However, the imbalance between supply and demand continues to put an upward pressure on house prices.
“Although more first-time buyers are entering the market, until more new homes are built properties will remain unaffordable to many. The government and the industry need to work together to address this issue if we are to see this confidence remain over the longer term.”