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According to a survey, the British real estate agents have reported the most widespread real estate increase since the pandemic, which indicates that lower interest rates increase sales activity.
The Royal Institution of Chartered Surveyors said on Thursday that its index of the new sales instructions rose to 25 in January, the ninth positive reading in a row and the highest level since September 2020.
The index pursues the difference between the proportion of agents who report an increase in new residential entries and those who report a decline.
Agents reported on a shrinking number of real estate that came onto the most three years to 2023, since the rising interest rates reached the affordability of mortgages and demand by buyers. However, the Bank of England has reduced the loan costs three times since August 2024 and is expected to reduce interest rates again this year, which contributes to the recovery of mortgage graves and the wider real estate market.
Shaun Brannen, director of the real estate agency Brannen & Partners, said it was “a very strong start for the new year. . . Instructions are at very high levels ”.
Separate data published at the beginning of this month by lender Halifax rose more than expected To a new record high in January. The Bank of England reported last month that the mortgage permit rose in December and rose by 28 percent compared to the previous year.
While the number of instructions that came onto the market was “encouraging”, John Frost, managing director of Frost Partnership Estate Estate Agency, “buyers are very careful”.
The RICS index persecution agreed to sales in January slowed down to a net credit of three compared to seven in December.
With increasing offer and weakened sales, the survey showed a “noticeable” increase in the inventories of real estate agents with an average of 45 entries per branch, compared to 41 a year ago.
The stock values are also significantly higher than the record low of 34 in September 2022, which has marked the closest supply since the data in 1978.
The prospects for sales with homes remained positive, with a net cut of 10 percent of real estate agents expected in the next three months an increase in sales and a net increase in the coming year.
Tarrant Parsons, RICS leader of the market analysis, said the latest survey showed that the buyer “lost a little dynamics” in January, but the respondents continued to present “a somewhat positive short-term outlook for sales activities”.
