UK house prices rose at the fastest pace in nearly three years in January

According to the January 2020 RICS UK Residential Market Survey, renewed optimism from buyers and sellers saw a continued pick-up in sales activity across the UK housing market, with both the number of agreed sales and new homes being listed for sale improving over the month.

At the national level, the number of homes being listed for sale increased in January, as a net balance +19% of respondents reported a rise, up from +11% in December. In addition to the increase in homes being put up for sale, January saw an increase in the number of people looking to buy as new buyer enquiries rose to a net balance of +23% from +19% in December. As well as this, agreed sales rose for a second month in a row (a net balance of +21%).

Looking ahead, respondents to the survey expect this refreshed optimism to continue with sales anticipated to rise across all UK regions, both in the near term and for the year to come.

Simon Rubinsohn, RICS Chief Economist, said: "The latest survey results point to a continued improvement in market sentiment over the month, building on a noticeable pick-up in the immediate aftermath of the General Election. The rise in new sales instructions coming onto the market is a noteworthy and much needed development, given the lack of fresh listings over the past few years had pushed stock levels to record lows. It remains to be seen how long this newfound market momentum is sustained for, and political uncertainty may resurface towards the end of the year. But, at this point in time, contributors are optimistic regarding the outlook for activity over the next twelve months."