Your Guide: RICS 2023 December Report
As the curtains close on 2023 and we step into 2024, the UK property market forecast reveals a landscape of evolving trends and opportunities. Property owners have begun to take a more active interest in the market and swapped wrapping Christmas presents for moving boxes.
This sentiment is seen in the most recent findings from the Royal Institution of Chartered Surveyors (RICS) for December 2023. This RICS report is a valuable tool that offers a lens through which we can view the residential market survey and provides figures as well as verbal feedback from local surveyors to give context.
Join us as we look at what these trends may mean for your property and why it’s important to get surveys planned out and booked sooner rather than later.
Understanding the Market Dynamics: A RICS Perspective
The RICS residential market survey from December 2023 signals a small, yet significant positive shift in market sentiments. Some of the key highlights include an improvement in both the short-term and long-term sales (3-month and 12-month respectively) expectations which is likely the result of the recent easing of mortgage interest rates, creating a more buyer-friendly environment.
This has set a stable foundation for positive changes in the market including more stabilised pricing across the country.
Property Prices 2024: A Move Towards Stabilisation
This stabilisation is especially visible in the slowing of house price declines. This trend suggests a move towards a stabilising market, offering a strategic entry point for potential buyers to put their money back into property.
This is in large part down to gauges that indicate a less negative outlook than in previous months, hinting at a potential balance between buyer and seller expectations in the future. While not a massive increase, the respondents in the survey anticipate a flat trend over the next 12 months which will add to trust and provide more confidence in the market.
Supply and Demand: A Delicate Balance
This has had a knock-on effect as the report shows an uptick in buyer interest, with the buyer enquiries indicator reaching its least negative reading since April 2022. This shift towards a neutral zone points to a growing confidence among potential buyers.
On the supply side, the stability in new instructions to sell implies a market that is cautiously waiting, with the average number of properties listed per estate agent remaining below the 15-year average.
It seems as though both buyers and sellers are taking a deep breath before diving back in, and this points towards a positive trend that buyers and sellers may want to get ahead of.
Regional Insights and Future Projections
Improvements have also been seen outside of places like London with the RICS report highlighting significant regional variations, with areas like Northern Ireland experiencing an increase in property prices for December 2023 and is suggested to continue in 2024. The overall 12-month outlook is optimistic, with a projected recovery in residential sales volumes. This regional analysis is crucial for buyers and investors to make region-specific decisions.
For more details, make sure to check the Surveyor Comments in the report. RICS have compiled feedback from surveyors in each region to provide a bit more context and insight.
The Lettings Market: Current Trends and Projections
The RICS report also touches on the lettings market, where a consistent rise in tenant demand is noted, though the growth rate has moderated. The scarcity of landlord instructions is likely to keep rental prices afloat and bodes well for landlords and investors, indicating a strong rental market in the foreseeable future.
The Imperative of Professional Surveys
With more optimism in the market, there is no time like the present to start checking your portfolio and making plans for the future. As such, the role of professional property surveys can not be overstated. To help accommodate your research and planning, we offer a range of surveying services (including RICS-approved surveys) to ensure buyers and sellers are making well-informed decisions.
A comprehensive property survey’s value can not be overstated. Along with providing insight into the market, a property survey from Watsons can uncover hidden issues, provide realistic expectations and timeframes, and help in planning for future maintenance or renovations. This step is vital in avoiding unexpected costs and ensuring the property’s long-term value.
Watsons Property’s surveying services are not just about identifying potential issues with a property either; they also provide an accurate valuation and insights into local market conditions.
In a market where prices are stabilising, and regional variations are prominent, such an understanding is invaluable. It ensures that buyers are paying a fair price and are aware of the property’s potential appreciation or depreciation.
Work with Watsons Property Today
As we watch 2024 unfold, the UK property market presents both challenges and opportunities. The December 2023 RICS report provides a comprehensive overview of current trends, but it’s the expertise of professional surveyors that turns this data into actionable insights. Our team is on hand to help you make the most of these changes by providing survey insights, and ensuring that whether you’re a buyer, seller, or investor, you can navigate the property market with confidence and clarity.
Overall, the RICS report suggests a market that is slowly regaining its footing, offering opportunities for long-term investments. The importance of professional advice in such scenarios cannot be overstated. Watsons Property’s expertise can guide investors in selecting properties that offer the best return on investment, considering both rental yields and property appreciation.
Want to know more? Explore the RICS report for yourself here or contact us today to learn how Watsons Property can assist you in your property journey. Here’s to making informed property decisions in 2024!
