UK housing market shows signs of stabilization as buyer demand improves

The UK housing market is showing signs of stabilization according to the August Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS). While indicators remain negative, there has been a consistent trend of improvement over several months.

Buyer enquiries reached a net balance of -19%, the least negative reading since January and the fifth consecutive monthly improvement. Agreed sales also saw a recovery, with a net balance of -17%, up from -38% in April. Looking ahead, expectations for sales over the next three months moved closer to neutral at -3%, while 12-month outlooks suggest a modest increase in sales volumes.

Despite these improvements in activity, house prices remain under downward pressure. The RICS price net balance was -28% in August, a slight improvement from -29% in July. Regional variations persist: Northern Ireland and the North West of England reported price growth, while London’s price balance remained more negative than the national average. In the lettings sector, rising tenant demand and limited supply continue to drive upward pressure.