The UK housing market showed signs of stabilising in June, according to the latest Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS). While buyer demand and agreed sales remain subdued, the pace of decline has eased, with improving sales expectations and a more optimistic outlook for house prices over the next year. At the same time, reduced housing supply and easing mortgage rates are beginning to support market conditions despite ongoing political and economic uncertainty.
- Buyer enquiries improved to their strongest level since February.
- Agreed sales remained weak but edged higher.
- Sales expectations improved for the next three months.
- New instructions to sell fell to a one-year low.
- House price declines continued to ease.
- More surveyors expect prices to rise over the next year.
Original article source: Mortgage Strategy.
The latest RICS survey suggests the UK housing market is entering a more balanced phase. Buyer demand and transaction levels remain below normal, but the steady improvement in enquiries, agreed sales and future sales expectations indicates that confidence is gradually returning. Rather than pointing to further deterioration, the figures suggest the market is adjusting to higher borrowing costs and a more measured pace of activity.
Another important takeaway is the continued decline in the number of homes coming onto the market. New instructions to sell fell to their weakest level in more than a year, while market appraisals also declined. With supply tightening, the downward pressure on house prices is beginning to ease despite subdued demand. This balance between constrained supply and cautious buyers helps explain why prices have remained relatively resilient instead of experiencing sharper declines.
Mortgage affordability remains an important factor, with economic uncertainty and domestic political developments encouraging some buyers and sellers to delay decisions. However, falling mortgage rates are improving affordability for many households, while those with genuine moving needs continue to negotiate and transact. For long-term investors and buyers, the market increasingly reflects stability rather than volatility, creating opportunities to make considered decisions in an environment that is becoming more predictable.
