Headline house price growth appears to be gradually gaining momentum and new buyer enquiries remains positive.

This is according to the latest Rics Residential Survey for October with forward-looking indicators remaining consistent with a further pick-up in sales volumes over near-term, although the rise in bond yields in recent weeks is likely to present something of a headwind as it feeds through into general lending conditions.

Looking at buyer demand, the headline net balance for the new buyer enquiries gauge registered a reading of +12% in October (little changed from +13% previously).

This extends a run of positive returns for the series into a fourth consecutive month, albeit the latest reading is still only pointing to a modest upward trend in demand.

With respect to agreed sales, an aggregate net balance of +9% of respondents reported an increase in sales volumes over the latest survey period, up from a figure of +5% recorded last month.

Importantly, having languished below zero throughout much of the previous two years, this now marks the third successive reading in positive territory.

Nevertheless, the recent results signal a modest improvement, rather than a sharp upturn, at this stage. Looking ahead, the near-term sales expectations series posted a net balance of +34% in October, up from a figure of +22% beforehand.

Similarly, a net balance of +36% of contributors foresee sales volumes rising over the next 12 months, even if this is slightly more moderate than the reading of +44% seen in September.

Positive sentiment

Commenting on the latest data, north London estate agent and a former RICS residential chairman  Jeremy Leaf  said: “Even though the recent cut in interest rates is now likely to be repeated later rather than sooner, market sentiment remains positive.

“New buyer enquiries are on the up and more sales are being agreed but progress is slow, particularly due to improving stock levels.

He added: “Some first-time buyers are looking to take advantage of investors withdrawing from transactions due to recent rises in stamp duty and before their own liability for the tax increases next April.”

Shawbrook managing director of real estate Emma Cox said: “Despite uncertainty in the run up to the Budget, optimism continued to encourage new buyer enquiries and sales figures to grow in October as aspiring and current homeowners look to tie up transactions before the end of the year.

“With the stamp duty relief for first time buyers not being extended into the new tax year in the Autumn Budget, we can expect this to continue with first time buyers keen to complete prior to the end of March.”