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.

UK House Prices and Market Activity Show Signs of Stabilising

The UK housing market remained subdued in June, but the latest Royal Institution of Chartered Surveyors (RICS) survey indicates that the recent slowdown may be starting to stabilise. While inflation, cost-of-living pressures, political uncertainty, and global conflicts continue to affect market activity, some respondents expressed hope that easing geopolitical tensions could support confidence.

New buyer enquiries stayed in negative territory, with a net balance of -29%. However, this was an improvement from -34% in each of the previous two months and marked the least negative reading since February. Agreed sales also remained weak, posting a net balance of -32%, compared with -35% in May.

Expectations for sales activity over the next three months improved, with the net balance rising to -16%, up from a recent low of -34% in March. Looking further ahead, respondents expect sales volumes over the next 12 months to remain broadly unchanged, with a net balance of +1%.

Supply continued to tighten during June. New instructions from vendors fell further into negative territory, declining to -23% from -10% previously, the weakest reading for more than a year. Market appraisals also declined, suggesting a potentially constrained supply of homes in the coming months.

House prices remained under pressure, with the national headline price balance at -33%, little changed from -34% in May. Respondents in the South East and South West reported the weakest price trends, while Scotland and Northern Ireland continued to record more positive conditions. Near-term price expectations remained negative but improved from the previous month, rising to -32% from -44%. Over the next year, respondents were modestly more optimistic, with a net balance of +8% expecting house prices to increase, up from +6% previously.

In the lettings market, tenant demand picked up, with the headline net balance rising to +18%, the strongest reading since May 2025. Landlord instructions remained negative at -18%, pointing to continued supply constraints. Against this backdrop, rents are expected to continue rising.