American homeowners may have been unfairly tarred with the NIMBY brush, with new research showing that wind turbines have a far smaller effect on house prices across the country than previously feared.
Using data from 300 million home sales and their proximity to 60,000 wind turbines, researchers found an impact of just 1% in value for houses that have a view of turbines within 6 miles.
The study, published today in the Proceedings of the National Academy of Sciences (PNAS) shows that only houses within 1.2 miles of a turbine saw their value significantly affected, at up to 8%. Beyond 1.2 miles, the impact rapidly tailed off.
The researchers note that fewer than 250,000 buildings in the U.S. sit within 2.5 miles of a wind turbine, with 8.5 million homes and structures within 6 miles of one.
“Our research responds to some arguments of local opposition against wind turbines, the classic ‘not in my backyard’ problem that is a hot topic not only in the U.S. but also in Europe and Germany,” says Leonie Wenz, a co-author of the study from the Potsdam Institute for Climate Impact Research (PIK), who suggests the findings could also be used as a basis for compensating affected homeowners.
“Our study also underlines that these impacts have been small in the last two decades, and that we can expect them to become even less of an issue in the future,” she adds.
The U.S. is investing heavily in renewable energy generation, with the Department of Energy describing wind power as “one of the fastest growing and lowest-cost sources of electricity in America.” But even as the Inflation Reduction Act helps incentivize the development of clean energy generation across the country, negative perceptions about wind turbines have in some areas led to strong local opposition to wind projects, causing them to be abandoned.
Notably, the study is the first of its kind to take into account not just of the proximity of homes to turbines, but whether the turbines were within sight of those homes. That’s significant, as Wei Guo of the Italian Centro Euro-Mediterraneo sui Cambiamenti Climatici (CMCC), and a co-author of the study, explains.
“Unlike previous studies, we did not only consider proximity, but also the actual visibility of wind turbines,” Guo says. “We calculated whether you can see the turbine, or whether there is a mountain in the way, for example, and if so, how the house value changes compared to other houses in the same area where residents cannot see the wind turbine.”
That consideration reveals an important detail: any negative economic effect of a wind turbine was found to decrease rapidly as distance from the turbine increased. Furthermore, the researchers say, the effect diminished over time, with any reduction in value peaking at three years following the installation of the turbine, and subsequently falling away.
“What really surprised me is that the house value bounces back to the original price over the years,” says Maximilian Auffhammer, a professor of agricultural and resource economics at the University of California, Berkeley, and a study co-author, who also notes that for turbines installed after 2017, any negative effect was “indistinguishable from zero.” In sum, Auffhammer says, the findings show that “the impact of wind turbines on house prices is much smaller than generally feared.”
Home builders are stepping back from cuts in prices as a way to attract buyers, buoyed by confidence that declining mortgage rates will boost the housing market, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).
For the fourth month in a row, builder confidence went up and at 51 in March was the highest level since July 2023. Part of the reason that they are feeling bullish about the housing market is due to an increase in demand.
“Buyer demand remains brisk and we expect more consumers to jump off the sidelines and into the marketplace if mortgage rates continue to fall later this year,” Carl Harris, NAHB chairman—and a home builder himself—from Wichita, Kansas, said in a statement.
Mortgage rates hit a peak of 8 percent in the fall of 2023, but have trended down towards the end of the year. And while they have ticked up again, last week Freddie Mac pointed out that the 30-year fixed rate had declined for another week to a little over 6.7 percent.
The NAHB suggested that falling rates and anticipation of further declines, as expectations that policymakers are set to bring down borrowing costs at some point in 2024, will spark more activity in the market.
“With the Federal Reserve expected to announce future rate cuts in the second half of 2024, lower financing costs will draw many prospective buyers into the market,” NAHB chief economist Robert Dietz said in a statement.
The anticipation of more buyers ready to explore opportunities to own homes has made builders pull back on slashing prices, a strategy they deployed in the past to spark sales.
In March, about 24 percent of builders said they reduced prices, the lowest number seen since July 2023, and down from 36 percent from December. But builders are still using this tactic to attract buyers, the NAHB said, with the average staying at 6 percent in March for the ninth consecutive month.
But builders were not without challenges. They are struggling to secure land to construct new homes, find enough workers and grappling with higher costs in the sector.
“Even though there is strong pent-up demand, builders continue to face several supply-side challenges, including a scarcity of buildable lots and skilled labor, and new restrictive codes that continue to increase the cost of building homes,” Harris said.
More demand for building, may contribute to a jump in prices for key products.
“As home building activity picks up, builders will likely grapple with rising material prices, particularly for lumber,” Dietz said.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
The average asking price for a house in London is now £686,844, up 0.6 per cent from February, according to the latest Rightmove house price index.
Some boroughs have seen asking prices rise by 5.6 per cent annually.
The property portal is reporting that buyer demand for homes in London is stronger than anywhere else in the UK.
Companies demanding workers return to the office, slowing inflation and the stabalising of house prices have all been cited as reasons for this uptick in demand.
“While mortgage affordability remains an issue, it certainly hasn’t dampened the appetite of London buyers,” said said Marc von Grundherr, director of Benham and Reeves
“We’ve continued to see a high level of activity at all price thresholds, but particularly across the super prime market,” he added.
“Buyers at the very top end of the ladder are acting with great confidence, with the higher cost of borrowing not presenting the same obstacle as the average homeowner.”
“Buyers at the very top end of the ladder are acting with great confidence.”
This tracks with Rightmove’s borough-level data, which shows asking prices have risen sharply in some of the capital’s most traditionally expensive boroughs.
Richmond-upon-Thames has seen asking prices shoot up 5.6 per cent since last year, with the average home now priced at £949,555.
They’re also up 5.6 per cent in Hammersmith and Fulham, where the average home now has an asking price of £1,010,417.
Westminster, right in the heart of prime London, has seen asking prices up 4.7 per cent and an average house price currently sitting at £1,526,159.
Kensington and Chelsea has bucked this trend, with house prices dropping 0.3 per cent since last year. But with an average asking price of £1,667,168, it’s still the most expensive part of London to buy in.
“Some house hunters decided to pause their search in the hope for major incentives to be announced in the Spring Budget.”
However, Rightmove cautioned that this enthusiasm for a London property spending spree has been tempered somewhat by the “lacklustre” Spring Budget 2024, which all but ignored tax incentives for first-time buyers.
“In March, the property market witnessed steady demand from buyers although some house hunters decided to pause their search in the hope for major incentives to be announced in the Spring Budget,” said Matt Thompson, head of sales at Chestertons.
“As this wasn’t the case, the majority of these buyers have since begun resuming their property search. As a result, we expect for March to conclude the first quarter of the year with a busy property market – particularly in the capital where demand continues to outstrip supply.”
London’s most affordable borough, in the sense that anywhere in the capital could be described as affordable, is Barking and Dagenham, where the average home is priced at £360,537 and asking prices are down 2.6 per cent annually.
Croydon, where the average property price is currently £484,795, has seen asking prices drop 0.6 per cent since this time last year.
Camden’s market remains the most volatile, with the lowest annual drop of 3.2 per cent, but a monthly increase of 1.5 per cent and a high average house price of £1,085,835.
It now takes 73 days on average to find a buyer in London.
“More listings mean buyers are often spoilt for choice, so are not rushing to take the plunge,” said north London estate agent Jeremy Leaf.
“Only realistically-priced property [are] attracting attention,” he explained.
“Those sellers who appreciate that if they receive enquiries in the early days of marketing, they are much more likely to find a buyer, are taking most advantage of increased demand.”
House prices across the UK are up 1.5 per cent across the UK in March – higher that the 22-year average of a one per cent monthly increase for the country.
Rightmove reported that sales agreed are up by 13 per cent compared to this time last year, and buyer demand is up eight per cent.
Despite facing a tough property market in the latter half of 2023, estate agents in England and Wales achieved 96.7% of the asking price on average for homes sold, according to the latest data from estate agent comparison site GetAgent.co.uk.
This figure represents a minimal decrease of just 0.5% from the first half of the year, a commendable performance given the higher mortgage rates and general market uncertainty that characterised the second half of 2023.
The North East region topped the chart, with properties selling for 97.5% of the asking price on average. Other regions, such as the North West and Yorkshire and the Humber, also saw high percentages of asking price achieved, with estate agents in the West Midlands reaching an average of 97%.
Wales, while achieving the lowest average, still managed to secure sales at 95.7% of the asking price, underlining the resilience across the board.
London’s property market remained stable, maintaining an average of 96.5% of the asking price without any decline from the previous six months. In contrast, the East Midlands observed the most significant drop, with a reduction of 0.9% in the average asking price achieved.
Colby Short, co-founder and CEO of GetAgent.co.uk, reflects on the industry’s performance: “To see the percentage of asking price achieved remaining so high is testament to the hard work and resilience of estate agents across the country.”
He also highlights the importance of setting realistic expectations for vendors to facilitate successful sales and expresses optimism for the year ahead: “With demand metrics showing improvements hopefully we will start to see the percentage of asking price achieved increase over the next 12 months.”
What’s amazing when you look at property price data is the huge differences between regions, but that within those regions, the towns and cities also perform at different rates.
Over time, out of the 30 cities we track, since 2005, property prices have only risen above the average annual 3.8% inflation rate in only seven cities/towns. These include:
• Manchester
• Bristol
• Cambridge
• Oxford
• Brighton and Hove
• London
• Edinburgh
Milton Keynes property prices are on a par with the average annual rate of inflation.
All the remaining towns and cities have seen their average property prices grow at less than inflation – which is not something anyone would realise if they took their understanding of property prices trends from the media.
The following towns and cities price growth ‘on average’ are performing well below inflation:
• Newcastle
• Belfast
• Aberdeen
• Southampton
• Nottingham
Price growth charts according to Land Registry and Hometrack
From a year on year basis, Edinburgh, Manchester and Oxford appear to be performing well historically and also year on year. Meanwhile Brighton and Hove appears to have lost some of its historic steam, along with Cambridge and London.
E.surv commentary
“In December 2023, only 11 of the 111 Unitary Authority areas in England and Wales were recording house price gains over the previous twelve months, which is 8 fewer authorities with price rises over the year than in November 2023.
“The area with the highest annual increase in prices in December 2023 is Gwynedd in Wales, up by 6.4%. In Gwynedd, prices for both detached and semi-detached homes have increased over the last twelve months, with the most significant increase on a weight-adjusted basis being detached properties, up from an average £345k in December 2022 to £370k one year later.
“By way of contrast, the area with the largest fall in prices over the last twelve months was – perhaps ironically given its proximity to Gwynedd – Denbighshire. In Denbighshire, prices have fallen by 16.1% over the year, with the largest fall in average values being detached properties, down from an average £310k in December 2022 to £245k in December 2023. However, it is perhaps likely that this had more to do with the attributes of the individual houses sold in the period, as opposed to a collapse in the housing market.”
Appendix: City/town property indices price tracking
For city/town tracking, we use Land Registry (government data) and Zoopla/Hometrack. The Land Registry data is useful because we can analyse how property prices have changed over time and this helps us to put today’s price information into context.
The Zoopla/Hometrack data is useful as they take into account the change in mix of property transactions during the pandemic to houses away from flats. This has meant the likes of the Land Registry and other indices have over exaggerated price changes year on year.
Berkshire’s cheapest places to buy a home have been ranked by average house prices that also reveal the most sought-after towns.
House-hunters can see a vast difference in what they’ll need from the best bargain neighbourhoods to the most expensive in the region in the list below.
Spanning across Reading, Bracknell Forest, West Berkshire and Slough, prices for homes are compared by local authority areas.
Figures have been compiled by metal roofing manufacturer Cardinal Steels and Online Marketing Surgery for their House Price Report.
Experts used the House Price Index from the Office for National Statistics, comparing year-on-year averages between January 2023 to January 2024. It shows that the cheapest homes were in Reading, followed by Tilehurst with average prices of £331K and £337K respectively.
The most in-demand homes in the past year were in some of the cheapest neighbourhoods.
The highly populated areas of Berkshire are Reading with 350,000 residents, Bracknell (125,200), Newbury (44,171) and Wokingham with 185,000 residents.
The least populated areas in Berkshire are Hamstead Norreys with 879 residents, Bray (8,425), Charvil (3,163) and Ascot with 11,603 residents.
The most expensive area for properties is Ascot, with it’s Royal background and celebrity-studded neighbourhood. The average price to buy a house in the Ascot and Sunninghill area is £984,205.
The villages of Bisham and Charvil come in second and third spot respectively for the most expensive areas.
The average home in the village of Bray near Maidenhead will cost you £600,742, whilst properties in Ascot could set you back at £984,205.
A spokesman for the Online Marketing Survey said: “With constant inflation rises, the opportunity for first time buyers to get a mortgage offer that is affordable and reasonable is extremely difficult. This is leaving people either not moving out at all or paying to rent a place instead.”
Berkshire areas average house prices
Average House Price (January 2023 – January 2024)
Reading (RG1)
£331,913
Tilehurst (RG30)
£337,750
Bracknell (RG12)
£361,096
Newbury (RG14)
£382,663
Thatcham (RG19)
£385,921
Whitely (RG2)
£395,330
Colcot Row (RG31)
£425,567
Sandhurst (GU47)
£430,218
Woodley (RG5)
£445,630
Earley (RG6)
£487,603
Hampstead Norreys (RG18)
£487,955
Colnbrook (SL3)
£492,659
Hungerford (RG17)
£497,822
Binfield (RG42)
£506,403
Aldermaston (RG7)
£514,470
Winnersh (RG41)
£536,767
Crowthrone (RG45)
£552,641
Wokingham (RG40)
£579,531
Caversham (RG4)
£594,733
Bray (SL6)
£600,742
Chieveley (RG20)
£667,583
Charvil (RG10)
£686,816
Bisham (SL7)
£789,190
Ascot (SL5)
£984,205
EIGHT common features around the home could actually be knocking money off its value.
Halifax said house prices rose for a fifth consecutive month in February by 0.4% and 1.7% year-on-year.
The uptick might have you thinking of selling on your property and cashing in.
But you should be wary of a number of features that could actually make your home worth less, according to estate agent Yopa.
Ponds, artificial grass and unused or old swimming pools can knock up to 19.6% off the value of your home it turns out.
An unused or old swimming pool could slash your home’s worth by £55,799, based on the average UK property price of £284,691.
Got brown, unpainted Pebbledash on your external walls? That could be reducing the value by £28,469.
Meanwhile, poor parking options, or none at all, can slash your potential asking price by £19,359.
Artificial grass, having no lawn and no bath in the main bathroom can also see the average UK home value drop by £14,804, £6,100 and £5,694 respectively.
Having a north facing garden and pond can also see a home’s value fall by £5,525 and £5,258 respectively.
How to boost the value of your home
Some home improvements will inevitably boost the value of your home more than others.
Nick Leeming, chairman of estate agent Jackson-Stops, said buyers were increasingly looking for green energy measures in homes such as electric vehicle charging points.
He added: “We might see buyers start to negotiate on asking prices, prioritising a home purchase that is future-proofed from day one.”
Meanwhile, data from property buying company Open Property Group recommends 12 improvements that will boost the overall value of your property the most.
Loft conversions, costing around £40,000, can add £56,938 to the value of the average UK house price of £284,691.
A 20square foot extension, costing around £48,000, can add £56,938.
Meanwhile, a garage conversion can add £28,469 while only costing an estimated £15,000.
This is Open Property Group’s list of 12 home improvements, how much they cost and how much they’ll add to the value of your home:
- Loft conversion (£40,000 cost) – £56,938 added value
- 20square foot extension (£48,000 cost) – £56,938 added value
- Garage conversion (£15,000 cost) – £28,469 added value
- Garden room/office (£10,000 cost) – £21,352 added value
- Kitchen upgrade (£10,550 cost) – £15,658 added value
- Utility room (£8,730 cost) – £14,235 added value
- Solar panels (£7,000 cost) – £11,388 added value
- All over redecoration (£3,200 cost) – £8,825 added value
- Bathroom renovation (£5,000 cost) – £7,402 added value
- Boiler/central heating upgrade (£3,850 cost) – £5,409 added value
- EV charging point (£1,150 cost) – £4,840 added value
- Landscaped garden (£3,950 cost) – £4,270 added value
How else to boost the value of your home
Jonathan Rolande, from the National Association of Property Buyers, previously revealed to The Sun one quick tip to boost the value of your home when it comes to actually selling up – buying flowers and plants.
Doing this can increase the value of your home by thousands of pounds and create a greater demand among buyers.
“It increases the saleability,” he told The Sun. “You buy some nice plants, clean the rooms and the estate agent photos will look a lot better.
“This means you get more people looking around, more competition, and you can barter the price more.”
Giving your home a fresh lick of paint will boost its immediate value too, according to Chris Husson-Martin from Hamptons estate agent.
Adding a few lights to your home can add thousands to the value of your home as well, he told The Sun.
It’s worth moving any furniture that’s blocking windows around the house as well, to let any natural light in.
Do you have a money problem that needs sorting? Get in touch by emailing money@the-sun.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
EIGHT common features around the home could actually be knocking money off its value.
Halifax said house prices rose for a fifth consecutive month in February by 0.4% and 1.7% year-on-year.
The uptick might have you thinking of selling on your property and cashing in.
But you should be wary of a number of features that could actually make your home worth less, according to estate agent Yopa.
Ponds, artificial grass and unused or old swimming pools can knock up to 19.6% off the value of your home it turns out.
An unused or old swimming pool could slash your home’s worth by £55,799, based on the average UK property price of £284,691.
Got brown, unpainted Pebbledash on your external walls? That could be reducing the value by £28,469.
Meanwhile, poor parking options, or none at all, can slash your potential asking price by £19,359.
Artificial grass, having no lawn and no bath in the main bathroom can also see the average UK home value drop by £14,804, £6,100 and £5,694 respectively.
Having a north facing garden and pond can also see a home’s value fall by £5,525 and £5,258 respectively.
How to boost the value of your home
Some home improvements will inevitably boost the value of your home more than others.
Nick Leeming, chairman of estate agent Jackson-Stops, said buyers were increasingly looking for green energy measures in homes such as electric vehicle charging points.
He added: “We might see buyers start to negotiate on asking prices, prioritising a home purchase that is future-proofed from day one.”
Meanwhile, data from property buying company Open Property Group recommends 12 improvements that will boost the overall value of your property the most.
Loft conversions, costing around £40,000, can add £56,938 to the value of the average UK house price of £284,691.
A 20square foot extension, costing around £48,000, can add £56,938.
Meanwhile, a garage conversion can add £28,469 while only costing an estimated £15,000.
This is Open Property Group’s list of 12 home improvements, how much they cost and how much they’ll add to the value of your home:
- Loft conversion (£40,000 cost) – £56,938 added value
- 20square foot extension (£48,000 cost) – £56,938 added value
- Garage conversion (£15,000 cost) – £28,469 added value
- Garden room/office (£10,000 cost) – £21,352 added value
- Kitchen upgrade (£10,550 cost) – £15,658 added value
- Utility room (£8,730 cost) – £14,235 added value
- Solar panels (£7,000 cost) – £11,388 added value
- All over redecoration (£3,200 cost) – £8,825 added value
- Bathroom renovation (£5,000 cost) – £7,402 added value
- Boiler/central heating upgrade (£3,850 cost) – £5,409 added value
- EV charging point (£1,150 cost) – £4,840 added value
- Landscaped garden (£3,950 cost) – £4,270 added value
How else to boost the value of your home
Jonathan Rolande, from the National Association of Property Buyers, previously revealed to The Sun one quick tip to boost the value of your home when it comes to actually selling up – buying flowers and plants.
Doing this can increase the value of your home by thousands of pounds and create a greater demand among buyers.
“It increases the saleability,” he told The Sun. “You buy some nice plants, clean the rooms and the estate agent photos will look a lot better.
“This means you get more people looking around, more competition, and you can barter the price more.”
Giving your home a fresh lick of paint will boost its immediate value too, according to Chris Husson-Martin from Hamptons estate agent.
Adding a few lights to your home can add thousands to the value of your home as well, he told The Sun.
It’s worth moving any furniture that’s blocking windows around the house as well, to let any natural light in.
Do you have a money problem that needs sorting? Get in touch by emailing money@the-sun.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories.
(Bloomberg) — Britain’s housing market has achieved a “soft landing” after as dip in prices last year, with a pickup in buyer confidence in February, according to one of the most forward-looking surveys tracking sentiment.
Most Read from Bloomberg
Simon Rubinsohn, chief economist of the Royal Institution of Chartered Surveyors, said a decline in mortgage interest rates has brought people back to the market and that a survey of agents indicates growing optimism about sales and prices.
“In terms of where we are in the market, I would characterize it as a soft landing, certainly as far as pricing is concerned,” Rubinsohn said Thursday on Bloomberg Radio. “The peak-to-trough decline in prices looks in this cycle very modest.”
The survey confirms reports from mortgage lenders Nationwide Building Society and Halifax showing that house prices picked up at the start of the year and now are little changed from their peak in 2022 — defying predictions last year for a drop of 10% or more. Bank of England data also have shown an increase in mortgage approvals, suggesting strength in the market.
RICS’s survey paints an upbeat outlook for the market after a slump in prices in 2023 triggered by the highest interest rates in 16 years. With economists anticipating rate cuts from the Bank of England later this year, home buyers are becoming more confident.
“The rise in the number of appraisals taking place points in the right direction,” Rubinsohn said. “Whether the increase in stock coming back to market will be sustained is likely to be a critical factor in explaining how things play out over the balance of the year.”
RICS also found:
-
Agreed sales were little changed in February, registering a balance of minus 3% — stronger than most of the past year but down slightly from January.
-
Sales expectations for the coming year were positive at a reading of 42%.
-
New sales instructions hit the highest level since October 2020, a contrast to declines in most of last year.
-
House prices in RICS survey were headed down but at the least negative pace since October 2022. A turnaround in London is more pronounced.
What Bloomberg Economics Says …
“The British property market is gathering momentum. A less restrictive interest rate outlook and real wage growth are luring buyers back. That highlights upside risks to our forecast of house prices remaining broadly flat in 2024 relative to 2023.”
—Niraj Shah, Bloomberg Economics. Click for the OUTLOOK.
In the home rental market, landlord instructions continue to dwindle while tenant demand kept rising at a slightly more modest pace. Most agents expect rents to rise over the near-term, although fewer were positive than a year ago.
“There are signs that the relentless upward trend in private rents is losing momentum,” Rubinsohn said. “But fresh demand is still comfortably outstripping supply in this area which suggests there is unlikely to any significant relief for tenants.”
–With assistance from James Woolcock, Stephen Carroll and Lizzy Burden.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.
There are more sellers putting their homes on the market but the outlook remains cautious because of ongoing uncertainty around interest rate cuts, surveyors have warned.
Over a fifth, 21%, of property professionals reported new selling instructions are rising rather than falling, marking the strongest reading since October 2020, the Royal Institution of Chartered Surveyors (RICS) said.
On average, estate agents’ branches had 42 properties, the highest number recorded by RICS since February 2021, with those surveyed noting an increase in market appraisals during the month, compared with the same period last year.
Sarah Coles, Yahoo Finance UK columnist and head of personal finance at Hargreaves Lansdown, warned that despite the encouraging figures, the property market might still be struggling.
“The housing market inspired more confidence in February, as buyers slowly resurfaced, and optimism rose among estate agents. However, given the broader picture, there’s still a risk that February may not have been flying after all. It could just have been falling with style,” she said.
The proportion of UK mortgages in arrears has risen to its highest level since 2016 as households continue to struggle with high interest rates.
The value of outstanding mortgage balances with arrears increased by 9.2% between October and December from the previous quarter, to £20.3bn, and was 50.3% higher than a year earlier, according to Bank of England data.
“There’s also less positive news from the mortgage market in recent weeks. Many of those agreeing sales at the moment will have agreed their mortgages back when rates were slightly lower. Since then, the market has reassessed the chances of an imminent rate cut, and put mortgage rates up.
“The average 2-year rate dropped from 5.93% on the 2 January to 5.56% at the end of the month, according to Moneyfacts. However, by the end of February, the average 2-year mortgage rate was back up to 5.75%. It could stifle demand as the impact feeds into the market,” Coles added.
Across the UK, new buyer inquiries grew for the second month in a row, with a net balance of 6% of professionals reporting a rise rather than a fall.
Most areas of the UK have shown a recovery in buyer interest over the past two months, the report said.
However, home sales were broadly flat in February, with a balance of 3% of professionals reporting a decline rather than an increase.
Simon Rubinsohn, RICS chief economist, said: “The February RICS survey provides some grounds for encouragement around the sales market with not just buyer interest staying positive for the second successive month, but also the uplift in new instructions to agents.”
Looking ahead, the sales expectations for the near term are positive and sales activity is expected to gain further momentum over the year ahead, the report said.
Markets are now pricing in three 0.25% cuts from the Bank of England by the end of the year, having forecast just short of three full cuts before the data came out.
In the lettings market, tenant demand continues to rise but at a more modest pace than previously, according to RICS.
At the same time, however, landlord instructions are still dwindling. Professionals were expecting rents to move higher over the months ahead, albeit at a slower rate.
Tom Bill, head of UK residential research at estate agent Knight Frank, said: “The economic data has fluctuated since Christmas but the direction of travel for the housing market is up.”
Watch: House prices are up, Nationwide says
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