Surveyors Optimistic About Increase in Property Sales, Despite High Borrowing Costs

British property surveyors anticipate an increase in property sales later this year, despite ongoing high borrowing costs. The Royal Institution of Chartered Surveyors reported that the number of homes being put up for sale rose at the fastest pace since September 2020. While the main house price balance remained unchanged at -5 in April, there were signs of a rising volume of transactions in the housing market.

According to RICS Chief Economist Simon Rubinsohn, a modest increase in mortgage pricing has contributed to a slowdown in buyer enquiries, but there is still optimism that market activity will pick up in the latter part of the year and into 2025. House purchases had declined following former Prime Minister Liz Truss’ budget plans in September 2022, but prices have stabilized since the start of the year.

Mortgage lender Halifax noted that prices had plateaued in recent months, and economists are expecting the Bank of England to maintain its main interest rate at 5.25%. However, there is speculation that a rate cut could come as soon as next month as consumer price inflation returns to its 2% target. Despite concerns about rising wages and services prices pushing inflation higher, financial markets are only expecting two quarter-point rate cuts this year, starting in August.

Overall, there is cautious optimism in the British property market, with expectations of increased sales in the coming months despite challenges posed by borrowing costs and political uncertainty ahead of the upcoming general election. Stay tuned for more updates on the latest developments in the real estate sector.