U.K. housing market recovery likely to have continued in December

The U.K. housing market is expected to have continued recovering in December. The shock of Brexit was evidently felt in the housing market; however, just as with the rest of the economy, the housing market showed a solid rebound after the initial surprise. Therefore most of the indices of the RICS housing survey have increased robustly from their lows in June.

Typical of this rebound has been the recovery in new buyer enquiries. This appears to be a good leading indicator of mortgage approvals and is therefore of particular interest, noted Societe Generale in a research report.

The construction PMI indicated the same behaviour as the RICS survey and it recorded fresh growth in December. This provides grounds to expect additional gains in the range of RICS indices in the December survey, added Societe Generale.