Housing market shows signs of strain as sales decline but rental demand surges

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Property prices continued to slow down in June and many estate agents think further falls could be on the cards in the coming months

HOUSE IT GOING: New enquiries from prospective UK buyers fell to eight month low in June

A report from the Royal Institution of Chartered Surveyors revealed that a net balance of 45 per cent of property professionals reported a decline in buyer inquiries, marking a significant deterioration from May's figure of 20 per cent. Similarly, newly agreed sales also experienced a dip, with a weaker net balance of 34 per cent reporting falling sales compared to the balance of 8 per cent observed in May.

Looking across to the rental market, the Rics report revealed a contrasting scenario. According to the report, tenant demand continued to surge, with a net balance of 40 per cent of professionals reporting an increase. “Inevitably in this environment, activity levels are likely to remain relatively subdued. However, an important message coming back from Rics agents is around ensuring prices are set with an eye on the market conditions of today, rather than the recent past; when this is done, sales are taking place.

 

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