The latest UK Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS) points towards a housing market that is likely to remain under pressure throughout the summer, with overall sentiment still weak despite small pockets of improvement.
The survey, which tracks feedback from estate agents across the UK, measures key indicators such as buyer demand, new property instructions, agreed sales, and price expectations. The most recent results suggest that conditions remain challenging across most of these areas.
Overall, the tone of the report remains cautious. While some metrics showed slight improvement compared with the previous month, the broader picture continues to reflect a market struggling with economic uncertainty and weak confidence.
Buyer activity remains particularly subdued. New enquiries from potential buyers stayed in negative territory during April, although there was a small improvement compared with March’s figures. This indicates that while conditions are still difficult, the pace of decline may be slowing slightly.
Agreed sales also continued to perform poorly. Estate agents reported that transactions remained below normal levels, suggesting that many buyers are still hesitant to commit to purchases.
Looking ahead, expectations are not encouraging. Short-term forecasts for sales activity remain firmly negative, while even longer-term expectations for the next year have softened further, slipping into marginally negative territory.
A key factor influencing this outlook is ongoing economic pressure. High borrowing costs, persistent inflation, and concerns about the broader cost of living continue to weigh heavily on buyer confidence and affordability.
There is also growing concern around wider global instability. Survey respondents highlighted geopolitical uncertainty, particularly tensions in the Middle East, as an additional factor affecting sentiment. Some industry professionals have linked recent volatility to fears over inflation and the possibility of further interest rate rises.
Supply levels, however, have remained relatively stable for now. The number of new instructions coming onto the market did not change significantly, suggesting that sellers are still listing homes despite weaker demand.
That said, there are signs that future supply could weaken. A drop in new property appraisals indicates that fewer homes may be prepared for sale in the coming months, which could further affect overall market activity.
House prices have also come under renewed pressure. The latest survey shows a noticeable weakening in price sentiment compared with the previous month, reinforcing the view that the market is still adjusting to affordability constraints.
The report also highlights a clear regional divide across the UK. Southern areas, including London, the South East, East Anglia, and the South West, are experiencing stronger downward pressure on prices, largely due to higher property values and stretched affordability.
By contrast, parts of the North West and broader northern regions have shown more resilience, with some areas still reporting modest growth. Scotland and Northern Ireland continue to record comparatively stronger price performance as well.
Despite these regional differences, most surveyors agree that pricing remains a key factor in determining market activity. Properties that are realistically priced are still attracting interest, while overpriced homes tend to remain on the market for longer periods.
Industry commentary included in the report reinforces this view. RICS research chief Tarrant Parsons noted that the housing market is continuing to feel the impact of broader economic “headwinds”, including inflation pressures and uncertainty around future interest rate decisions.
He also highlighted that guidance from the Bank of England suggesting potential further rate increases has added to the cautious mood among buyers and sellers. Until there is clearer stability in borrowing costs and inflation, market activity is expected to remain subdued.
Estate agents in London reported that both geopolitical uncertainty and rising mortgage costs are continuing to suppress transaction levels. However, they also noted that demand has not disappeared entirely, with buyers still active where pricing is aligned with expectations.
In contrast, some surveyors in northern regions reported a more resilient outlook. While activity initially slowed following recent global events, there are early signs that market conditions may be starting to stabilise again in certain areas.
Overall, the RICS data suggests a housing market that is still finding its footing. While there are occasional signs of resilience, particularly in more affordable regions, the wider picture remains one of caution, with summer activity expected to stay relatively weak unless economic conditions improve.
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