The November 2022 RICS UK Residential Survey results show overall activity continues to weaken across the sales market, with higher interest rates and a difficult macroeconomic outlook both taking their toll on buyer sentiment. Meanwhile, rising demand and falling supply sent rental prices upwards.

For the seventh month in a row, buyer demand continued to fall, with the net balance coming in at -38%. Whilst this is less negative than the -53% reported in the previous month, the market remains in a downward trend with indications that this will continue in the near term.

For agreed sales, a national net balance of -35% was reported over this survey period indicating a continued decline in sales activity. Again, this is marginally less negative than the reading of -45% posted in October, but this is also the second month in a row that respondents across every UK region reported a decline in agreed sales, demonstrating what is a now a consistently negative picture at the national level.

Regarding house prices, a net balance of -25% of survey participants witnessed a fall at the national level over the month. This is the lowest reading since May 2022. Prices are reportedly retreating across most parts of the UK, with the latest feedback especially downcast in the South East and South West of England.