House price growth continued to slow in the UK in July while key indicators covering price expectations, buyer enquiries, agreed sales and new instructions all remained firmly negative, according to the latest RICS UK Residential Market Survey. 

UK house price growth posted the lowest survey reading in three years in July. Just 5% more respondents nationally saw a rise rather than fall in prices, a downward trend that is evident across the UK. The London price indicator remains more down beat (net balance of -33%) which is broadly consistent with an outright drop in prices in the capital.

As price growth slows for now, near term price expectations across the UK were negative for the third month in succession with 12% more respondents predicting a decline in house prices over the next three months.

As activity falters, interest from new buyers in the UK also continues to wane, with the results showing a fourth consecutive month of falling demand (net balance of -27).  

Lack of stock in the housing market continues to cause ripples, with new instructions falling again in the month of July. 33% more respondents to the survey have seen a fall in new instructions and supply is at or around record lows in most parts of the UK.