Key facts
- The downturn in Britain's housing market eased slightly in June.
- New buyer enquiries improved, and near-term sales expectations recovered.
- The headline house price balance remained largely unchanged.
- Tenant demand in the rental market strengthened significantly.
- Rents are projected to increase by approximately 2.5% in the coming year.
The downturn in Britain's housing market showed a slight abatement in June, according to a survey by the Royal Institution of Chartered Surveyors (RICS). Despite the Bank of England holding interest rates steady, uncertainty surrounding inflation and borrowing costs continues to impact sentiment. The headline house price balance remained largely unchanged at -33%, though a measure of new buyer enquiries improved to -29%. Near-term sales expectations also recovered, and over the next 12 months, sales are anticipated to be broadly flat with price expectations rising. In the rental market, tenant demand strengthened considerably, while landlord instructions remained negative. Rents are projected to increase by approximately 2.5% over the next year. RICS noted that housing market activity is likely to remain subdued in the near term due to ongoing uncertainty about the political backdrop and interest rate path.