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

RICS Survey: UK Housing Market Set for Muted Sales Over Next Year

The latest Royal Institute of Chartered Surveyors (RICS) monthly housing survey indicates that estate agents should prepare for subdued transaction volumes over the next 12 months. The data suggests the market may have passed its lowest point, but any recovery remains tentative.

New buyer enquiries recorded a negative net balance of -29%, which is a slight improvement from -34% in the previous two months and the least negative reading since February. Newly agreed sales also remained weak at -32%, compared with -35% previously. Near-term sales expectations improved to -16%, up from a recent low of -34% in March. Looking ahead, respondents expect sales volumes to remain broadly flat over the next year, with a positive net balance of just 1%.

Price Pressures and Market Conditions

House prices continue to face downward pressure nationally, with the headline price balance at -33%, which is broadly unchanged from recent months. The report notes that some housebuilders are discounting unsold homes to maintain sales momentum amid these pressures.

Industry Perspectives

The survey highlights ongoing uncertainty in the market, with factors such as political instability, interest rate uncertainty, and geopolitical concerns affecting activity. While some indicators have shown marginal improvement, the overall sentiment remains cautious. Financing activity continues in some sectors, with portfolio landlords securing refinancing deals, but the broader market remains constrained.

Outlook for Letting Agents and Inventory Clerks

For letting agents and inventory clerks, the survey suggests that transaction volumes and prices are likely to remain under pressure in the near term. The market is expected to stay in a holding pattern, with only those who need to move negotiating hard and trying to anticipate future trends. No significant rebound in activity is expected over the summer.