Buyer demand continues to recover modestly alongside a rise in new instructions to sell

At a headline level, the new buyer enquiries indicator posted a net balance reading of +6% in February (identical to last month’s figure).

This marks the second successive reading in positive territory, and therefore continues to signal an upward trend in buyer demand.

When disaggregated, most parts of the UK have seen a recovery in buyer enquiries over the past two months.

Looking at the agreed sales series, February saw a net balance reading -3% returned.

Although the latest result is a little softer than that recorded in the previous iteration of the survey (+4%), both readings are indicative of a stronger trend in sales volumes than was evident through much of the past twelve months.

Indeed, the average net balance for this metric is -22% when looking back over the past year.

Going forward, near-term sales expectations are marginally positive, posting a net balance of +6%. 

While this is slightly more modest than the figure of +12% seen last time, sales activity is still anticipated to gain further momentum over the coming year (net balance +42%).

Interestingly, one of the more noteworthy developments to come through in the February survey was a solid rise being reported in new instructions to sell.

The latest net balance of +21% represents the strongest reading since October 2020, standing in stark contrast to the continuously negative picture cited throughout 2023.

Moreover, respondents across all UK regions foresee residential sales activity picking up over the longer-term time horizon.

Sales are expected to rise modestly in the near-term and gain further momentum over the year ahead, while house prices continue to stabilise with twelve-month projections signalling a return to growth.