The Royal Institution of Chartered Surveyors (RICS) Residential Market Survey - April 2023, reported a market continuing to struggle, with high borrowing costs and an uncertain economic outlook remaining the main challenges for home buyers.

In terms of net balance, new buyer demand for April dropped to -37% from the -30% recorded in March (captured on a seasonally adjusted basis). However, most of the survey’s indicators have improved slightly from the lows hit towards the end of 2022.

The indicator capturing agreed sales for April returned a net balance of -19% up slightly from -30% last month. Interestingly, this represents the least negative reading since July 2022.

In terms of supply, survey respondents cited an overall flat picture for new instructions during April, with the net balance declining slightly to -4% (from -6% in March).

The recent decrease in demand and sales has resulted in a slight increase in the average number of properties held on estate agents’ books (36 homes on average for each agent, compared to 35 in February and March).

Simon Rubinsohn, RICS chief economist, commented: “Buyer demand still appears to be subdued in the face of relatively high borrowing costs, the prospect of at least one more interest rate hike and ongoing affordability challenges.”