UK housing market downturn eased a little in June, RICS reports

THE downturn in Britain’s housing market abated slightly last month, although sentiment remains fragile and prone to uncertainty, a survey from the Royal Institution of Chartered Surveyors (RICS) showed on Thursday (Jul 9).

“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,” said RICS head of market and analysis Tarrant Parsons.

The survey’s headline house price balance was little changed at -33 per cent. May’s reading was revised up slightly to -34 per cent.

A measure of new buyer enquiries improved to -29 per cent from -34 per cent in each of the previous two months, the least negative reading since February.

Near-term sales expectations recovered to -16 per cent from a March low of -34 per cent, while over the 12-month horizon sales were seen broadly flat at +1 per cent and price expectations rose to +8 per cent from +6 per cent.

In the rental market, tenant demand strengthened to +18 per cent, the strongest since May 2025, while landlord instructions stayed negative at -18 per cent; rents were expected to rise by about 2.5 per cent over the next year

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“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,” Parsons said. REUTERS