Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

RICS Survey: Buyer Demand Weak, Rental Pressures Intensify in UK Market

The UK housing market remained subdued in May, according to the latest RICS Residential Market Survey. Buyer demand and agreed sales continued to weaken, while rental market pressures intensified due to ongoing supply shortages.

The survey found that new buyer enquiries recorded a net balance of -34%, unchanged from April, and agreed sales remained negative at -37%. Although these indicators continue to reflect a challenging market, surveyors noted that conditions had stopped deteriorating further, marking the first month since January where demand did not worsen.

Transaction times have continued to lengthen, with the average period from listing to completion rising to 21.5 weeks—the longest since RICS began collecting this data in 2017. House prices also remained under pressure, with a net balance of -35% of respondents reporting falling prices for a second consecutive month. The South East and East Anglia saw the weakest price trends, while Northern Ireland reported ongoing growth.

Looking ahead, sentiment remains cautious but has shown slight improvement. Near-term sales expectations rose to -25%, and the 12-month outlook moved into positive territory at +2%, suggesting some optimism for market strengthening over the coming year.

For letting agents and inventory clerks, the rental market continues to see strong tenant demand, with a net balance of +14%. However, landlord instructions fell further to -28%, highlighting a persistent supply shortage. Rent expectations increased to +36%, the highest level in a year, indicating further rental growth is likely in the months ahead.