The UK housing market is showing signs of recovery after two years of stagnation. According to the latest RICS UK Residential Survey for September, house prices have risen nationally for the first time since October 2022, marking a key turning point for buyers and investors alike.

National House Prices Increase by 16%

The survey reveals a +16% national price reading, a significant jump from the flat 0% result recorded in August. This is the first positive growth in two years, signalling renewed confidence in the housing market. However, the rate of growth is not uniform across all regions. While some areas like the West Midlands, South West, and East Anglia saw more moderate price increases, the overall trend remains positive.

Buyer Demand and Sales Activity Continue to Grow

The survey highlights a notable uptick in buyer demand, with a +14% net balance of respondents reporting increased inquiries. This is the third consecutive month of rising demand, showing that more buyers are entering the market. Sales activity has also improved, with a +5% net balance indicating a marginal rise in transactions.

Looking ahead, 23% of survey respondents expect the sales market to grow over the next three months, with a longer-term outlook showing even more optimism—45% of respondents believe the housing market will continue to strengthen over the next 12 months.

More Properties Coming to Market

September saw a significant rise in new property listings, with a +22% increase compared to a +9% result in August. This influx of properties for sale is helping to meet the growing demand from buyers. Some homeowners are likely looking to sell before potential Capital Gains Tax (CGT) increases, driving more listings onto the market.

For buyers, particularly self-employed and contract workers, this growing supply presents an excellent opportunity to secure a home at a time when mortgage rates are stabilising.

Rental Market Squeezed as Supply Dwindles

While the housing market is improving for buyers, renters are facing a tough situation. The survey reports a +22% increase in tenant demand in September, but the supply of rental properties fell sharply by -29%. This imbalance is further worsened by landlords opting to sell their properties ahead of CGT hikes, reducing rental availability and pushing up rent prices.

Renters are likely to face continued challenges as demand outstrips supply, making it more difficult to find affordable rental homes.

Why This Matters for You

With house prices rising and buyer demand increasing, now is a critical time for those looking to buy or invest in property. For contractors, freelancers, and self-employed professionals, this could be a key moment to act before prices climb further. A growing supply of homes and stabilised interest rates provide a window of opportunity to secure favourable mortgage terms.

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Whether you’re a first-time buyer, expanding your property portfolio, or looking to remortgage for better terms, we’re here to help you every step of the way. Don’t miss out on this golden opportunity—contact Mortgage Tek today and let us guide you toward securing your dream home or investment property.