The market remained relatively subdued in June, with indicators on buyer demand, sales and prices remaining in slightly negative territory, the most recent Residential Survey by RICS has revealed.
Despite recent months showing a softening in momentum, survey data revealed that expectations have now turned a little more optimistic with regards to the near-term outlook.
At a headline level, the new buyer enquiries measure posted a net balance reading of -7% in June, broadly in-line with the figure of -8% returned the previous month.
This indicator continued to signal a modest weakening in demand from home buyers, marking the third month in succession in which enquiries slowed.
At the same time, the newly agreed sales gauge posted a net balance of -7% in June, marginally less negative than the reading of -13% seen in the previous iteration of the survey.
These two readings followed a brief period of recovery earlier in the year.
In addition, a net balance of +20% of respondents predicted that residential sales volumes would recover over the next three months.
This was up from a reading of +10% the previous month, representing the most upbeat figure for the near-term sales expectations indicator since January 2022.
Meanwhile, the flow of new sales instructions slowed during June, evidenced by a net balance reading of -9% being registered.
Alongside this, the latest reading for the new market appraisals indicator came in at just +1%, down from +17% in May.
This suggested the level of appraisals undertaken of late is now largely flat when compared with that of 12 months ago.
For house prices, the headline net balance remained unchanged compared to the previous month, coming in at -17% once again.
Within this, East Anglia, the South East and South West of England all returned clearly negative readings for house prices this month.
However, prices in Northern Ireland and Scotland remain on an upward trajectory according to survey respondents and recorded positive net balances of +64% and +29% respectively.
The three-month ahead price expectations series recorded a net balance of +5% in June.
Moreover, at the 12-month time horizon, a net balance of +41% of contributors expect to see an increase in house prices.
Across the rental market, a net balance of +28% of survey participants saw a pick-up in tenant demand during June.
Meanwhile, the new landlord instructions net balance slipped from -3% to -11%, pointing to a renewed decline in rental listings.
Going forward, a net balance of +38% of respondents anticipated that rental prices would rise over the coming three months.
Jeremy Leaf, North London estate agent and former RICS residential chairman, said: “The election had limited impact on our buyers and sellers, not just because the outcome had been largely factored in but the pace and level of mortgage rate reductions was much more relevant.
“Over the past month and particularly since the result, we have seen a rebound in confidence and activity.
“However, we are not getting carried away as the increased choice and continuing economic concerns will keep the higher price aspirations of homeowners in check.”
