The RICS house price balance, a level of diffusion index that measures surveyors’ outlook on United Kingdom house prices, came in at 12% in August after plunging to 5% in July, a more than three-year low.
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The Royal Institution of Chartered Surveyors said in a report issued Thursday that a larger share of its members reported an increase in prices compared with the immediate aftermath of the June 23 referendum.
House price balance, a level of diffusion index that measures surveyors’ outlook on United Kingdom house prices, rose during the month of August, showing signs of improvement in an attempt to demonstrate that the economy has started to stabilize after the June 23 Brexit referendum.
The housing market’s expected to pick up again across the east following a dip after Brexit.
Across the United Kingdom confidence continues to recover at a gradual pace with August’s results being the first time both the three and twelve month price and sales expectations returning to positive territory.
Rics said a “real shortage of property for sale” is a key factor supporting house prices. A net balance of 16% of surveyors expect prices to rise once again across the region.
Sean Murphy, managing director of branch banking at Ulster Bank, said the second quarter of the year had been “encouraging” for the Northern Ireland market, with figures from the Council of Mortgage Lenders revealing home buyers had borrowed £350 million for house purchase – up 3 per cent quarter-on-quarter and 13 per cent year-on-year.
The Recruitment and Employment Confederation – which last month said hiring was in “dramatic freefall” – said firms increased permanent staff for the first time in three months, and were also spending more on temporary workers. In August, an overall balance of 7% of surveyors reported buyer demand falling rather than rising, but in July the balance of surveyors seeing demand fall back was much higher, at 25%.
Simon Rubinsohn, chief economist at RICS, said: “There are clear signs that the housing market is settling down after the initial surprise of the outcome to the European Union referendum”.
In line with the modest decline in new buyer enquiries newly agreed signs also showed signs of recovery.
Also, the new buyer enquiries balance was negative for the fifth month in succession, with the new instructions balance signalling a sharp fall in new sales listings.
A stamp duty hike for second-home buyers, including buy-to-let investors, imposed on April 1 has been blamed for disrupting the housing market and causing sales to bunch up earlier in the year as buyers rushed to snap up properties before the deadline.
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Sales volumes – which had previously dropped sharply – were now stabilizing, RICS added.
