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 Survey: UK Housing Market Shows Signs of Stabilising in August

Falls in homebuyer demand and agreed sales became less severe in August, according to surveyors from the Royal Institution of Chartered Surveyors (RICS). The latest RICS survey found that a net balance of 19% of property professionals reported a fall in new buyer inquiries, but this was the least negative reading since January and marked the fifth consecutive month of improvement.

A net balance of 17% of professionals reported a fall in agreed sales, which was the least negative figure since February and a notable improvement from April, when 38% reported a decline. Expectations for sales over the next three months also improved, with a net balance of 3% expecting sales to fall, compared to 13% in July. Looking ahead 12 months, a positive net balance of 6% of professionals expected sales volumes to increase, up from 3% previously.

House prices remained under pressure, with a net balance of 28% of professionals reporting falling prices in August. This was only slightly better than July’s 29%, but an improvement from April’s 35%. London continued to see a more negative price balance than the UK average, though the figure improved compared to July. Northern Ireland and the North West of England were among the areas where professionals continued to report rising or gently growing prices.

The supply of new properties coming to market was broadly unchanged, with the net balance for new sales instructions at zero in August, compared to minus 2% in July.

For letting agents and inventory clerks, the lettings market continued to experience strong tenant demand and constrained supply, leading to upward pressure on rents. The net balance of professionals expecting rents to rise over the next three months increased to 44% in August, up from 33% in July. Over the next 12 months, professionals expect UK rents to rise by around 3% on average.

RICS head of market research and analysis Tarrant Parsons noted that while indicators are improving, any recovery remains fragile, with uncertainty over borrowing costs and the October Budget.