The January 2023 RICS UK Residential Survey results continue to highlight a muted market, with new buyer demand, sales, fresh listings, and prices all reported to be on a downward trend.

Near-term expectations suggest this picture is likely to remain in place for a while longer as the market adjusts to higher interest rates in the UK.

At a national level, the latest net balance for new buyer enquiries slipped to -47%, down from a reading of -40% last month. This continues to signal a decline in demand, with the January return marking the ninth successive negative monthly reading for new buyer enquiries.

The latest feedback on national house prices points to another monthly decline, with the January net balance softening further to -47% compared to a reading of -42% beforehand.

All regions of England are seeing house prices retreat at present, with the sharpest declines (in net balance terms) coming across the East Midlands and the South East.

Simon Rubinsohn, chief economist at RICS, said: “Although some respondents to the January RICS survey have noted a little more interest in the housing market as the new year got underway, the overall tone of the feedback still remains subdued which is not altogether surprising given the jump in mortgage rates since the autumn.”