The latest RICS Residential Market Survey has reported a “very modest” rise in buyer demand whilst new instructions to sell have also held steady over the month.
The survey’s headline price balance moved up to -1% in June from -9% in May. This measure (as a lead indicator) is now pointing to a flattish picture of national price inflation over the next couple of quarters.
At the regional level, with the exception of London, the South East, Yorkshire and Humberside and the East of England, all parts of the country are showing results that are consistent with further (in some cases modest) house price growth.
Contributors envisage that this largely stable trend in national house price inflation will persist over the coming three months.
However, 12-month expectations are displaying a little more momentum with 25% more respondents anticipating prices will rise, the highest reading for this indicator in 11 months.
Benson Hersch, CEO at the ASTL, said: “Whilst RICS has again confirmed that current activity is subdued, there is reason to be more optimistic about the future. This reflects the opinion of bridging lenders who contributed to the recent ASTL sentiment survey.
“This survey indicated a more robust outlook for the prospects of the UK economy and nearly 60% of respondents now expect ‘slight growth’ in property prices over the next six months, compared to just under 29% in January.”
Adrian Moloney, sales director at OneSavings Bank, added: “While the property market is far from out of the woods, pent up demand is looking like it could start to translate into activity. Although Brexit continues to loom, many buyers who have held off on purchase decisions are now growing impatient.
“As we move closer to autumn and a change of leadership in the government, a focus on the issues that have historically troubled the sector is needed. Increasing the supply of housing will help to reset the ongoing supply/demand imbalances, improve affordability and turbocharge future activity in the market.”