The latest, June 2023, RICS Residential Market Survey has revealed that an eight-month low for new buyer enquiries points to a renewed deterioration in sales market activity. 

As borrowing costs continue to rise, many of June’s survey results have fallen deeper into negative territory in terms of net balance readings. However, it is important to note that most of these figures remain a little less downbeat than the lows seen at the end of 2022. 

New buyer enquiries slipped to a net balance of -45%, down from -20% in May, which is the lowest reading recorded since October 2022 (-51%). Respondents across all parts of the UK reported a firmly negative trend in buyer enquiries compared to May. 

Simon Rubinsohn, RICS chief economist, commented: “The latest increase in interest rates and the impact this has already had on mortgage rates is clearly visible in the key RICS metrics regarding buyer enquiries, sales, and prices, which have all retreated over the past month.

“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.”