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UK Housing Market Stagnant in July, Says RICS Survey

The UK housing market showed little improvement in July, with buyer demand and agreed sales broadly unchanged from the previous month, according to the Royal Institution of Chartered Surveyors (RICS).

  • New buyer enquiries recorded a net balance of -28% in July, flat compared with June.
  • Agreed sales stood at a net balance of -30%, also unchanged month-on-month.
  • Northern Ireland continues to record rising prices, while London's year-ahead price expectations have fallen sharply.

The UK housing market experienced little change in July, with buyer demand and agreed sales remaining broadly stagnant compared to the previous month, according to the Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey.

New buyer enquiries registered a net balance of -28% in July, showing no change from June. While this figure remains negative, it represents a recovery from the -41% recorded in March, suggesting a slower rate of demand deterioration. Agreed sales also remained flat month-on-month at a net balance of -30%, a slight improvement from April's -37%.

Regionally, London, the South East, and South West are reporting more negative price balances than the national average. In contrast, Northern Ireland continues to see rising prices. Price momentum in Scotland, which had previously shown sustained growth, appears to be levelling off.

Three-month price expectations remain weak at a net balance of -31%. However, twelve-month expectations are slightly more positive at +4%. London is a particular area of concern, with year-ahead price expectations falling sharply to -23% from -10% in the prior survey.

Simon Rubinsohn, chief economist at RICS, stated that the market remains subdued due to geopolitics, the domestic political climate, and the cost of mortgage finance. Louise Apollonio of Shawbrook noted that the usual summer pick-up has not occurred, possibly due to extreme weather, government reshuffle uncertainty, and the wider geopolitical picture.

Why this matters: The continued stagnation in buyer demand and sales indicates ongoing challenges in the UK housing market, influenced by various economic and political factors.

What this means for you: For buyers, competitively priced homes are selling, potentially creating room for negotiation on properties with higher expectations.

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