The UK housing market continued its recovery during September, according to the latest RICS UK Residential Survey, as buyer enquiries, agreed sales and new listings all remained “strong” during the month.

RICS suggested that sales further ahead are expected to weaken, however, evidenced by twelve-month expectations which have moved deeper into negative territory.

During September, RICS recorded a headline net balance of +52% of survey participants reporting an increase in new buyer enquiries, marking the fourth consecutive pick-up in demand. Similarly, new instructions rose for a fourth month in a row, which is the longest stretch of rising supply since 2013.

With a net balance of +48% of contributors reporting that appraisals are up in annual terms, RICS also stated that the pipeline for instructions over the coming months is expected to be “solid”.

Respondents to the survey said they expect the upturn in sales will continue over the coming three months, with the latest net balance coming in at +17%.

However, RICS suggested this is becoming “increasingly at odds” with the longer-term view. Twelve-month sales expectations moved deeper into negative territory, posting a net balance of -34%, down from -17% in August. Contributors continued to cite potential job losses across the economy once the furlough scheme is withdrawn as a significant risk for market activity further ahead.

RICS chief economist, Simon Rubinsohn, suggested the latest RICS findings provide further evidence of the “buoyancy” of the housing market, with more buyers and sellers helping to boost activity across the country.

“However, there is increasing concern that the combination of significant job losses over the coming month allied to the scaling back of policy initiatives in early 2021 will have an adverse impact on transaction levels,” Robinson said.

“Meanwhile there is little sense this softer sales picture will be accompanied by very much easing in the momentum around prices and rents adding to the ongoing challenge around affordability.

“Recent government announcements around planning reform have a role to play in addressing this issue as does the focus on low cost home ownership but it is critical that the focus remains squarely on delivering more homes across all tenures to ensure that access to housing is improved and that the fears around a sharp rise in homelessness proves unwarranted.”

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