Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.
RICS Reports Early Signs of Stabilisation in UK Housing Market
The UK housing market showed early signs of stabilising in June, despite subdued activity, according to the latest residential market survey from the Royal Institution of Chartered Surveyors (RICS). The report found that while the pace of decline is easing, buyer demand and sales remain weak.
The RICS survey indicated that new buyer enquiries improved slightly, with the headline net balance rising to -29% from -34% in each of the previous two months. This was the least negative reading since February, but still pointed to weak demand. Agreed sales also saw a marginal improvement, with the net balance at -32%, compared to -35% previously. However, these figures continue to reflect subdued market activity.
Looking ahead, near-term sales expectations improved to a net balance of -16%, up from a low of -34% in March. Respondents expect the recent weakness to ease over the next three months, but do not anticipate a significant recovery. Sales volumes over the next year are expected to remain broadly flat.
Supply in the market continued to weaken. The new instructions to sell indicator fell to a net balance of -23%, down from -10% previously, marking the weakest reading for more than a year. Market appraisals also declined to -22%, suggesting the pipeline of new properties is beginning to thin.
House prices remained under modest downward pressure, with the latest aggregate net balance at -33%, broadly unchanged from previous months. The report suggested that this trend is stabilising rather than worsening. Regionally, the South East and South West of England continued to record weaker price sentiment than the UK average, while Northern Ireland and, to a lesser extent, Scotland, reported rising house prices.
Near-term expectations for prices remained slightly negative but improved from the previous survey. Over the next 12 months, respondents were modestly more optimistic, with a net balance of +8% expecting prices to rise, up from +6%.
Domestic political uncertainty was highlighted by respondents as a growing headwind, despite recent easing in global geopolitical tensions. The figures suggest that the overall supply of homes may be restricted in the months ahead, with market sentiment remaining subdued.
Source: Mortgage Strategy