The housing market in England and Wales remained subdued in June although there were signs of marginal improvement, according to the Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey.
New buyer enquiries remained negative, with a net balance of -29%, a slight improvement on the -34% recorded in the previous two months.
June marks the least negative RICS survey reading since February, although agreed sales also remained subdued at -32%, compared with -35% previously.
The figures continue to indicate a challenging sales market, however near-term sales expectations improved to -16%, up from a recent low of -34% in March.
Looking further ahead, respondents expect sales volumes to remain broadly flat over the next 12 months, with a net balance of +1%.
Supply continues to be an area of challenge, with new instructions to put properties on the sales market dropping to -23% from -10% previously, the weakest reading in over a year.
Market appraisals also declined, suggesting the pipeline of homes coming to market might remain constrained in the months ahead.
House prices continue to face downward pressure nationally, coming in at -33%, compared with -34% in May and -35% in April.
The South East and South West of England continue to report more negative price trends than the UK average, while Northern Ireland and Scotland remain more positive.
Near-term price expectations also remain subdued, although less negative than before, moving to -32% from -44%.
The outlook for pricing over the next 12 months is more positive, with a net balance of +8% of respondents expecting prices to rise, up from +6% previously.
Dan Stocks MRICS, a surveyor in Guildford, said: “Market uncertainty remains due to Labour leadership changes, cost-of-living pressures, fuel prices, the ongoing Russia–Ukraine war and the recent conflict involving Iran, all of which continue to weaken confidence.”
Paul Mcskimmings, of Edward Watson Associates in Newcastle-upon-Tyne, said: “Despite difficulties with world conflicts and political instability at home, instructions have remained constantly high. It will be interesting to see what happens to the market following a change of prime minister.”
RICS head of market research and analysis, Tarrant Parsons, said: “June’s survey results offer some cautious encouragement that the worst of the slowdown in market activity may be beginning to pass, with several key indicators moving in a less negative direction for a second consecutive month. That said, any nascent improvement remains fragile and is now being tested by renewed political uncertainty on the domestic front.
“While the Bank of England left interest rates unchanged, uncertainty around the outlook for inflation and borrowing costs continues to weigh on sentiment, even if the recent decline in oil prices is a welcome development. Until there is greater clarity over both the political backdrop and the path of interest rates, housing market activity is likely to remain relatively subdued in the near term.”
