UK house costs: Sales ascend notwithstanding loan fee rise

Britain's property market shrugged off the Bank of England’s (BoE) interest rates hike after sales soared in February as momentum in the sector strengthened slightly.

According to the latest RICS residential market survey, new buyer enquiries and agreed sales picked-up in the month despite the increase in rates and mounting concern over rising energy prices.

A net balance of 17% of survey participants said they had seen a jump in new buyer enquiries. This is the sixth time in a row an increase has been reported and the strongest it has been over this period, RICS said.

The survey showed that the number of agreed sales also improved in the same period, with a net balance of 9% saying sales of homes were increasing. This was the strongest reading since May 2021.

Looking forward, RICS anticipates that deals should increment in the following quarter, in spite of the fact that at a more slow speed. Respondents additionally anticipate that deals should stay on a vertical direction over the approaching year.

In the interim, the body said extended decay in the volume of new deals guidelines going onto the market has settled, with net equilibrium moved to - 4% from - 7% beforehand.

Respondents expect a further ascent in public house costs both at the three and year time skylines.

"Curiously, these cost assumptions have really climbed somewhat higher since the primary loan fee climb was endorsed by the Bank of England back in December," RICS said.