The number of new buyers coming to the housing market fell again in June, new research by RICS has indicated.

According to the latest RICS UK Residential Survey, the latest net balance for new buyer enquiries slipped to -27%, down from a reading of -9% previously.

June marked the second consecutive month in which the RICS survey’s headline measure of demand has been in negative territory, although the feedback on buyer enquiries was a little more resilient in London compared most other parts of the UK, with the capital displaying a net balance of +7% in June.

The net balance used by RICS to monitor market activity is a proportion of respondents reporting a rise in prices minus those reporting a fall, and therefore measures how widespread price rises or falls are on balance, rather than the magnitude of any price changes.

RICS reported that the volume of sales agreed over the month also dipped slightly at the countrywide level in June, evidenced by a net balance of -13% being returned, which was a little softer than a figure of -5% posted in the previous iteration of the survey.

Looking ahead, RICS said that near-term sales expectations are now marginally negative, with a net balance of -9% of respondents anticipating a fall in transactions over the coming three months. The 12-month sales expectations are also negative, delivering a net balance of -21%.

A net balance of +65% of respondents also noted an increase in house prices over the latest survey period. While this is down on the recent high of +79% reported for April, RICS said the latest reading is still indicative of a solid pace of house price inflation, and comfortably above the long-run average of +13%.


Commenting on the RICS data, Hargreaves Lansdown senior personal finance analyst, Sarah Coles, said: “The property market is coming off the boil, with demand falling again, supply flat, and sales slowing. A desperate lack of property available to buy is keeping prices rising, but the fire has gone out, so the latent heat in the market is cooling.

“Rising prices, the threat of higher interest rates, and now the uncertainty of the political landscape are finally taking a toll. The agent comments included some of the most negative predictions we have seen.

“The buyers are still there, but they’re increasingly cautious, and they’re keeping one eye on how bad things are going to get for them financially. As life gets tougher, more of them are pulling out of agreed sales and trying to negotiate a lower price.

“The lack of property for sale continues to drive prices higher overall, but the fall in demand is keeping a lid on it. It’s also making buyers more price-sensitive, so there’s more talk of overpriced properties going nowhere and sellers being forced to scale back their expectations. This is hitting particularly hard at the top of the market.”

Share Story: