New buyer enquiries remained weak, with a net balance of -28%. Although demand remained negative, it was an improvement from the low of -41% reported in March, suggesting that the pace of deterioration has eased.
New vendor instructions registered a net balance of -4%, compared to -23% in June, indicating a gradual stabilisation of the flow of properties entering the market.
Accordingly, agreed sales recorded a net balance of -30%, unchanged from June.
Near-term sales expectations improved for the fourth consecutive month to -14%. Furthermore, 12-month sales expectations rose to +3%, marking the most positive reading since February.
The national house price balance improved slightly from -32% to -30%, although falls continued to outpace rises.
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Twelve-month house price expectations stood at +4%, suggesting surveyors are more confident about prospects for prices over the coming year.
Tenant demand slipped from +12% to -1% in the three months to July.
Additionally, landlord instructions remained firmly negative at -27%, suggesting rental supply continued to contract.
Inert market faces the ‘Burnham Bounce’
RICS members’ comments pointed to a divided outlook on the market. Some reinforced the sluggishness of the market, whilst others were somewhat optimistic.
Mark Hunter MRICS, of Grice and Hunter, said: “This has been a quiet month. In some areas an oversupply situation is developing,” while Martin Allen MRICS, of Elgars, remarked: “Even significant reductions in guide prices are not enticing viewers to venture out and view properties even though the properties are being seen in large numbers of online searches.”
Tony Dobbins MRICS, of Anthony Jones Properties, commented: “Steady but discerning. Buyers remain committed yet unhurried and increasingly price sensitive, with realistically priced homes still selling quickly and ambitious ones stalling before correcting.”
Kirsty Keeton MRICS of Richard Watkinson and Partners, said: “July has been surprisingly busy, maybe it is the Burnham Bounce or at least slight stability that buyers are craving.”
