UK house sales stabilise but uncertainties remain

The Royal Institution of Chartered Surveyors (RICS) has published its UK Residential Market Survey for June 2025.

The latest findings suggest signs of stabilisation in the sales market, although challenges persist for both buyers and sellers.

For the first time since December 2024, buyer demand has moved out of negative territory, with the net balance for new buyer enquiries rising to +3% in June. This marks a noticeable improvement from the -22% reported in May, although the figure still indicates a period of stabilisation rather than a strong recovery.

The national net balance for agreed sales improved significantly from previous months, falling to -3%, a marked improvement from the -25% and -28% reported in earlier surveys. Despite this positive trend, sales momentum is expected to remain subdued in the near term.

Near-term expectations for sales volumes have turned marginally positive, with a net balance of +6%, a sharp contrast to the -2% recorded in May. However, respondents foresee a broadly flat landscape for sales volumes over the next 12 months, with a net balance of +5%.

New instructions to sell have seen a slight decline, with the June net balance dropping to +3% from +7% in May. While this signals a slowdown in the flow of new listings, 16% of respondents reported an increase in market appraisals compared to the same period last year, indicating that supply levels remain relatively healthy.

Nationally, house prices continue to follow a flat to marginally negative trend, with the net balance for June remaining at -7%. There also continues to be much regional variation in price activity. The South East, East Anglia, and London have seen a more pronounced decline in prices, while Northern Ireland, the North West, Scotland, and the East Midlands experienced clear growth.

Looking ahead, respondents expect this slightly negative trend at the UK-wide level to continue in the short term. However, when asked about the twelve-month outlook, 24% of survey participants anticipate price increases in the coming year.

In the lettings market, tenant demand remained largely flat, with a net balance of -2% for June. Landlord instructions continued to decline, reporting a net balance of -21%. Despite these challenges, 24% of respondents expect rents to rise in the next three months, although this figure is more moderate than last month's +43%.

Tarrant Parsons, RICS Head of Market Research & Analysis, said: “The UK residential market appears to be entering a more settled phase, with demand showing signs of stabilising following a period of volatility. The earlier distortion caused by transactions being brought forward ahead of the Stamp Duty changes now appears to have largely dissipated, allowing underlying trends to re-emerge.

“Encouragingly, near-term sales expectations have begun to edge higher, pointing to a modest shift in sentiment. That said, confidence in the market remains somewhat delicate, with economic uncertainty at both the domestic and global level still seen as a potential headwind. “