Sales market sentiment improved in June, with indicators of buyer demand and agreed sales showing signs of stabilisation for the first time in months, according to the June 2025 RICS UK Residential Market Survey.
The headline net balance for new buyer enquiries rose to +3%, a notable recovery from -22% in May and the first positive reading since December 2024.
While this marks a potential turning point for demand, the data suggests the market is now steadying rather than entering a clear upward trajectory.
Similarly, the national net balance for agreed sales was reported at -3% in June, compared with -25% and -28% in the two preceding months.
Forward-looking sentiment also improved, with the net balance for near-term sales expectations moving into positive territory at +6%.
However, expectations over the 12-month horizon dipped to +5%, down from +25%, pointing to a subdued outlook for the year ahead.
On the supply side, the flow of new property listings has slowed slightly, with the net balance for instructions to sell falling to +3% from +7% in May.
Despite this, 16% more survey participants reported an increase in market appraisals compared with a year ago, indicating some pipeline momentum.
House prices remained under mild downward pressure overall, with the national net balance unchanged at -7%.
Regional variations were pronounced, with the South East, East Anglia and London reporting more negative sentiment, while Northern Ireland, the North West, Scotland and the East Midlands recorded more positive responses.
Looking ahead, the net balance for 3-month price expectations held at -10%, but 24% of respondents expect prices to rise over the next year.
In the lettings market, tenant demand held broadly steady with a net balance of -2%. Landlord instructions continued to fall, with a net balance of -21%.
Despite this, rent expectations remained positive, with a net balance of +24% forecasting increases over the next quarter, although this was a more moderate reading than the +43% recorded in May.
Reaction
Emma Cox, MD of real estate at Shawbrook:
“As market conditions begin to settle and rising house prices have started to plateau, we’re seeing a welcome return to growth in buyer demand, which has perked up to positive figures for the first time since December last year.
“It’s clear that a quiet confidence is returning, and buyers have adjusted to a new landscape now that the stamp duty exemption removal is firmly in the rear view mirror. As buyers compete to secure deals, further pressure is also being placed on the rental market – which still has a shortage of stock. While landlord instructions have fallen, for professional landlords, this has opened up compelling opportunities for those looking to expand their portfolios, and cater for demand by providing quality, energy efficient properties.”
Tomer Aboody, director of specialist lender MT Finance:
“Activity in the market continues to strengthen as buyers return after the lull following the end of the stamp duty holiday. First-time purchaser numbers in particular are picking up as interest rates remain steady and lenders more flexible when it comes to mortgage approvals.
“However, sales numbers still need to improve as this will benefit the wider economy, not just the housing market. Some encouragement is required via a reform in stamp duty to encourage those moving up the ladder, as well as those downsizing, to take the plunge.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“The market feels a bit like one step forward, one-and-a-half steps back. Although doing its best to recover activity levels prevailing earlier in the year, there’s little sign of a significant pick up yet.
“In our offices, demand has improved, particularly for houses rather than flats, and most sales agreed are staying that way despite some price renegotiation. However, the amount of property available and worries about the economy – regardless of the prospect of further interest rate cuts later in the year – are proving more relevant for many.”
