The latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey revealed a net balance of -2 per cent for new buyer enquiries in August, indicating stagnant demand following four consecutive months of positive figures.Â
Supply also remained constrained, with a net balance of -6 per cent of surveyors reporting that new instructions to sell fell during the month.
This subdued activity in both demand and supply contributed to a decline in newly agreed sales.
A net balance of -20 per cent of surveyors reported that sales declined in August, marking the lowest figure in over a year.
Despite these challenges, optimism remains for the coming months. A net balance of 29 per cent of surveyors expect sales to increase over the next three months, slightly up from 26 per cent in July.
The pricing landscape continues to show strength, with a net balance of 36 per cent of surveyors reporting that prices rose over the last three months.
Looking ahead, 34 per cent anticipate further price increases in the next quarter.
Marion Currie, an associate at Galbraith in Dumfries & Galloway, said the current market conditions were positive.
“Summer has continued to be a tale of good listings at sensible prices doing well, some fall-throughs still threatening and occasionally happening, but on the whole a positive outlook as we head into early autumn,” she said.
The rental market presents a more challenging picture, with a significant imbalance between supply and demand.
A net balance of 25 per cent of respondents expect tenant demand to rise, while an overwhelming -75 per cent anticipate landlord instructions to fall.
Consequently, 25 per cent of surveyors expect rents to increase over the next three months.
The current market conditions reflect broader economic uncertainties affecting buyer confidence.
Tarrant Parsons, head of market research and analysis at RICS, explained the underlying factors influencing the market slowdown.
“With buyer demand easing and agreed sales in decline, the housing market is clearly feeling the effects of ongoing uncertainty,” Mr Parsons said.
“Concerns over the wider economic and fiscal outlook, combined with questions around the future path of interest rates amid stubbornly high inflation, are weighing on sentiment at this time.”
