UK housing market loses momentum in July – RICS

UK house prices slipped and sales weakened in July as recent signs of housing market recovery faltered, the Royal Institution of Chartered Surveyors (RICS) said on Thursday.

The RICS UK Residential Survey showed new buyer enquiries falling to a net balance of -6 per cent from +4 per cent in June, while agreed sales dropped to -16 per cent from -4 per cent.

Near-term sales expectations turned flat, with a net balance of just +1 per cent, though a modest pick-up is expected over the next year.

Nationally, house prices posted a net balance of -13 per cent, with declines most pronounced in East Anglia. Prices continued to rise in Northern Ireland, Scotland and the Northwest of England.

In the rental market, tenant demand held steady, but landlord instructions fell to their lowest level since April 2020, at -31 per cent, fuelling expectations of further rent increases.

RICS Chief Economist Simon Rubinsohn said the market remained “particularly price sensitive” amid uncertainty over interest rate cuts and the Chancellor’s autumn budget.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama