Buyer demand turns positive for first time since December 2024: RICS
RICS UK Residential Property Survey June 2025
- Sales market stabilising towards a flatter picture
- Buyer demand turns positive for first time since December 2024
- Supply cools slightly but still exhibits marginal growth
- Tenant demand remains flat however landlords continue to leave the sector as rent price rises expected to continue upward trajectory
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.
According to RICS buyer demand has moved out of negative territory for the first time since December 2024 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.
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.
According to RICS house prices continue to follow a flat to marginally negative trend nationally, with the net balance for June remaining at -7%. 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.
UK residential market appears to be entering a more settled phase
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.“
Lower mortgage rates available with lots of sub-4% fixes
Mortgage lenders are offering more competitively priced rates with a large selection of sub-4% fixes currently available. Cheaper mortgage rates certainly incentivise borrowers to purchase properties and increase remortgaging to new providers.
Source: RICS UK Residential Market Survey for June 2025
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