UK House prices rising across for first time in two years

According to surveyors, house prices are rising for the first time in two years in the UK as a whole.

After a flat 0% result in August, 16% of professionals reported rising prices in September—the first positive reading since October 2022.

As per the Royal Institute of Chartered Surveyors (Rics), September saw growth in demand, sales, and new listings. 

Among property professionals, 14% reported a rise in buyer demand, 5% saw sales decline, and 23% predicted further rises in the next three months and 45% predicted an increase in the next twelve months. 

Additionally, 22% of professionals reported an increase in new listings.

The report also noted that speculation over a potential increase in capital gains tax was cited as encouraging some people to list their properties for sale.

Rics head of market analytics Tarrant Parsons said: “The latest survey results once again convey a brighter picture for housing market activity, with the recent easing in mortgage interest rates continuing to support a recovery in buyer demand.

“Critical for the outlook, a further unwinding in monetary policy is anticipated over the months ahead, which should create a more favourable backdrop for the market moving forward.

“In keeping with this idea, forward-looking sentiment data from the survey points to sales volumes gaining impetus, both in the near term and over the next 12 months.”

In the lettings market, demand continues to outstrip supply, Rics said. Professionals reported the supply of properties shrinking, while tenant demand increased.

This trend is further influenced by some landlords listing their properties for sale before potential capital gains tax rises, Rics said.

The findings were released as property website Zoopla said the average UK home now costs around £300 per square foot.

Hartlepool has the lowest cost per square foot at £118 and Kensington and Chelsea in London the most expensive, at £1,373, Zoopla calculated.