Results show weakest sales since early days of pandemic

Surveyors have reported a further decline in new buyer enquiries in July, with few expecting a change of fortunes in the short term.

According to RICS’ monthly UK Residential Market Survey, more surveyors reported a fall than a rise, with a net balance of -45% last month.

That was roughly equal to the -46% recorded the month prior and the negative return on enquiries was experienced across all UK regions.

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Surveyors said they expect the decline in new buyer enquiries to continue

RICS’ report said the results were “symptomatic of a market losing further ground in the face of higher mortgage rates”.

In keeping with the deteriorating demand backdrop, a net balance of -44% of respondents reported a decline in agreed sales.

That was down from June’s -36% figure and the weakest reading since the early stages of the pandemic in spring 2020.

RICS UK Residential Market Survey explained

The RICS UK Residential Market Survey is a monthly sentiment survey of chartered surveyors who operate in the residential sales and lettings markets. Surveyors are asked 18 questions on a range of metrics such as sales, enquiries, listings and house prices and are asked whether these have increased, stayed the same or decreased.

The ‘net balance’ refers to the proportion of respondents reporting a rise in a metric minus those reporting a fall.

For example, if 30% reported an increase in buyer enquiries and 5% reported a fall, the net balance would be +25%.

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