The UK housing market continued to show signs of stabilisation in August, although uncertainty regarding interest rates is still hindering a stronger recovery. Buyer demand and agreed sales both improved from recent lows, according to the latest RICS UK Residential Market Survey.
The net balance for new buyer enquiries improved to -19%, marking the least negative reading since January and a fifth consecutive monthly improvement. Agreed sales also strengthened, with the net balance rising to -17%, the strongest reading since February.
Despite these improvements in activity, house prices continued to face downward pressure. The headline price balance edged up from -29% in July to -28% in August, though it has gradually improved from -35% in April. Regional differences persist, with London recording a more negative price balance than the national average, while Northern Ireland and the North West of England reported rising prices.
In contrast, the lettings market saw tenant demand continue to rise while landlord supply remained constrained. The balance of respondents expecting rents to increase over the next three months sharply rose from +33% in July to +44% in August. Over the next 12 months, respondents anticipate UK rents to increase by approximately 3% on average.