The Royal Institution of Chartered Surveyors (Rics) suggests that the recent drop in mortgage rates may put a halt to the housing market’s momentum. Concerns about mortgage rates and uncertainties regarding the timing and pace of Bank of England interest rate cuts are casting a shadow over the sector’s short-term prospects.
Despite these worries, Rics notes an increase in both new property listings and buyer inquiries, indicating a potential shift towards a more positive trend. Additionally, the organization observes signs of stabilization in property price declines.
Simon Rubinsohn, chief economist at the Rics, said: ‘The February Rics survey provides some grounds for encouragement around the sales market with not just buyer interest staying positive for the second successive month but also the uplift in new instructions to agents.
‘Whether the increase in stock coming back to the market will be sustained is likely to be a critical factor in explaining how things play out over the balance of the year especially with new build likely to remain constrained.’