The outlook for the housing market in Wales has improved, with surveyors expecting sales to increase and prices to be steady over the next year.

This comes as respondents point to modest improvements in the market over the past month, accordingto the latest Royal Institution of Chartered Surveyors (RICS) Residential Property Market Survey.

A net balance of -9% of respondents reported a fall in newly agreed sales through November, and although still in decline, it the slowest rate since mid-2022. New buyer enquiries also fell at the slowest rate since early 2022, with a net balance of -9% reporting a fall, a marked improvement from -57% in October.

There was also more supply coming onto the sales market through November. A net balance of 16% of Welsh surveyors reported a rise in new instructions to sell during the month, the third consecutive month that this figure has been in positive territory.

Looking at pricing over the past three months, surveyors in Wales remain less downbeat than in the UK as a whole. A net balance of -36% of Welsh respondents reported that prices had declined through November, compared to the UK average of -43%.

In terms of the outlook, surveyors in Wales are more optimistic on the three-month outlook for sales than they were with a net balance of 17% of respondents anticipating a rise. A net balance of -12% of Welsh respondents anticipate that prices will fall over the next quarter, a marked improvement compared to -37%, -52% and -73% in the October, September and August surveys respectively.

Notably, expectations for next year have taken an upturn. A net balance of +30% of respondents in Wales now expects sales to be higher in a year’s time, up from the imbalance between demand and supply in the lettings market continued through November in Wales. A net balance of 29% of respondents reported a rise in tenant demand in Wales in the November survey. When looking at supply, a net balance of -29% of respondents in Wales noted a fall in new properties becoming available. With this supply and demand dynamic, a net balance of 43% of respondents in Wales expect rents to increase in the three months ahead, similar to the UK average figure of 42%.

Discussing the sales market, Tim Goodwin Assoc RICS of Williams & Goodwin The Property People in Gwynedd commented:

“There is a noticeable shortage of new instructions coming to the market as is the seasonal norm, but still plenty of enquiries from prospective purchasers.”

Commenting on the lettings market, Paul Lucas FRICS of R.K.Lucas & Son, in Haverfordwest said:

“There remains a significant shortage of rental properties around to satisfy demand.”

Regarding the UK picture RICS Chief Economist, Simon Rubinsohn, said:

“The latest RICS Residential Market Survey provides further evidence that sentiment is a little less negative than previously was the case with, critically, the new buyers enquiries indicator finally beginning to stabilise. This is being aided by increased confidence that the interest rate cycle has peaked which is reflected in somewhat more competitive mortgage products coming to the market.

“However, with the cost of money likely to remain elevated for some time to come and the economic outlook still downbeat, it is not surprising that the overall tone to the anecdotal remarks from survey respondents is still quite cautious.”