The latest findings from the Royal Institution of Chartered Surveyors show that housing market activity continued to slow in August.
The UK Residential Survey from RICS found that buyer demand, sales and new listings all fell during the month.
New buyer enquiries fell for the second consecutive month, with a net balance of -17%, compared to -7% in July.
House prices also dropped, falling 19% on average. East Anglia and the South West saw the most notable declines, decreasing by 64% and 46% respectively. Meanwhile, Northern Ireland continued to buck the trend as house prices continued to rise in the region.
The report also highlighted a dip in new vendor instructions, suggesting fewer fresh listings in the month. These fell by 3%, the first negative reading since June 2024.
Landlord instructions saw the steepest fall since April 2020, down by 37%. The report says that tenant demand remains resilient, however, which is expected to result in rents rising by around 3% over the next year.
RICS’ report says that participants of the survey remain cautious, with near-term expectations pointing to a continued softening in prices, falling potentially 20% over the next three months, while sales are forecast to remain flat.
Looking a year ahead, modest price growth is anticipated, although expectations have weakened compared to predictions earlier in the year.
Tarrant Parsons, head of market research and analysis at RICS, said: “With buyer demand easing and agreed sales in decline, the housing market is clearly feeling the effects of ongoing uncertainty. Concerns over the wider economic and fiscal outlook, combined with questions around the future path of interest rates amid stubbornly high inflation, are weighing on sentiment at this time.”
