The RICS UK Residential Survey of June 2023 showed a deterioration in sales market activity due to an increase in interest rate expectations.
New buyer inquiries dropped significantly, reaching an eight-month low with a net balance of -45% in June.
Newly agreed sales also fell to a net balance of -34%, the most negative figure since December last year.
Near-term sales expectations also worsened with a net balance of -36%, and a net balance of -31% expect sales to decline over the next year.
New sales instructions remained steady with a slight drop in the net balance, while stock levels on estate agents' books were more or less unchanged.
The national net balance for house prices fell to -46% in June, indicating increasing downward momentum. All regions in England reported declining house prices except for Northern Ireland and Scotland.
National house price expectations for both the near-term and the next year are firmly negative, with the net balance for the latter falling to -49%.
A majority of survey participants (58%) noted that homes with better energy efficiency are retaining their value better in the current market.
The lettings market saw increased tenant demand in June, but landlord instructions fell, resulting in a net balance of +53% of contributors expecting rental prices to rise in the near-term.
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