UK House Price Growth Gains Momentum: RICS

(RTTNews) - UK house price growth improved at the end of 2024 and expectations for prices remained firmly positive, the Residential Property Survey published by the Royal Institution of Chartered Surveyors, or RICS, showed on Thursday.

The house price balance rose to +28 percent in December from +24 percent in November. The measure gathered momentum in each of the past five months.

National house prices are forecast to continue to rise at both the three month and twelve month time horizons. A net balance of 53 percent of survey participants said prices will rise over the year ahead.

A net balance of 5 percent of respondents cited an increase in buyer enquiries, down from 11 percent in each of two previous months. The December figure is signaling a flatter trend now coming through in terms of buyer demand, RICS said.

The index measuring the volume of agreed sales improved slightly over the month to +7 percent from a reading of +1 percent in November.

Further, near-term sales expectations were mildly positive but the index fell to16 percent from +19 percent. Regarding the twelve-month outlook, a net balance of +37 percent of contributors foresee sales activity rising.

The new instructions indicator posted a net balance of +14 percent, representing the sixth successive report in which this measure has been in positive territory.

"The latest results from the RICS Residential Market Survey points to a further improvement in sentiment in the housing market despite concerns about the potential impact of rising bond yields on borrowing costs," RICS Chief Economist Simon Rubinsohn said.

Although rising gilt yield present a potential challenge for the housing market over the coming months, respondents to the survey remain reasonably upbeat about the medium term outlook.