The UK house market continued to stabilise in February, a closely-watched survey showed on Thursday, despite prices remaining under pressure.
According to the latest UK Residential Market Survey from the Royal Institution of Chartered Surveyors, the net balance for house prices was -10 last month.
A net balance is the proportion of respondents reporting a rise in prices minus those reporting a fall.
However, that was the least negative since October 2022, and a notable improvement on last year’s low of -67. Respondents were more optimistic looking forward as well, with a net balance of 36 expecting house prices to return to growth over the next year.
New buyer enquiries remained positive for the second month, unchanged at 6, while new instructions rose to 21, the strongest since October 2020.
Agreed sales, meanwhile, eased to -3 from 4 a month previously. However, RICS noted: “Although a little softer, both readings are indicative of a stronger trend in sales volumes than was evident through much of the past 12 months.”
Sales activity was also expected to gain further momentum over the coming year, with a balance of 42.
Simon Rubinsohn, chief economist at RICS, said: “The February survey provides some grounds for encouragement around the sales market, with not just buyer interest staying positive 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.”
The February survey was based on 273 responses from 520 branches.
