UK’s housing market continues to work its way towards rebounding, showing signs of a possible boom, even as property prices rose in July – the first increase since the coronavirus pandemic struck UK and the rest of the world. RICS monthly house price balance soared to +12 during July from -13 in June, indicating optimism in the market.

75% of estate agents surveyed witnessed an increase in the number of buyers during July, while 57% observed higher sales for the period. Respondents also noted that there were more number of homes being put up for sale in July.

New buyer enquiries registered a sharp increase in July, rising for the second consecutive month. Meanwhile, respondents to the survey expected house sales to rise in the coming three months, but could fall in a year’s time, indicating that the rebound could be temporary.

Chief economist at RICS, Simon Rubinsohn, observes, “It is interesting that there remains rather more caution about the medium term outlook with the macro environment, job losses and the ending or tapering of government support measures for the sector expected to take their toll. Some contributors are now even referencing the possibility of a boom followed by a bust.”