The Royal Institution of Chartered Surveyors (RICS) Residential Market Survey showed buyer demand and agreed sales slipped further into negative territory.
Surveyors gave a score of minus 33% for new buyer enquiries during the month, weaker than the scores of negative 16% in February and negative 32% in March. RICS said weaker demand was seen across most parts of the UK amid concerns about the domestic and global economy.
The firm said some respondents mentioned the impact of President Trump’s tariff announcements, but said the market was resilient.
Agreed sales down
Surveyors gave a reading of negative 31% for the level of agreed sales in April, down from negative 17% the month before. This sharper monthly decline was also the weakest reading since August 2023.
Welcome to the future: how collaboration is driving the shift to digital home buying
Sponsored by Halifax Intermediaries
Looking ahead, though, respondents gave a less negative forecast of minus 15% for sales in the next three months – better than the score of minus 17% given in March but still indicating a suppressed market.
This is expected to recover over the longer-term 12-month period, with respondents giving a reading of 17% for agreed sales in the future. This was a more positive reading than the score of 11% given in March.
Regarding housing supply, new instructions to sell received a score of 6% for the second month in a row. RICS said that while this was mildly positive, the recent readings pointed to a flatter trend in the flow of new listings than earlier this year.
Surveyors also gave a score of 9% for market appraisals, which the firm said was the only metric that was consistently rising.
House prices to stay flat, then recover
Surveyors gave a score of negative 3% regarding house prices, down on the previous reading of 2% in March. RICS said despite this slight dip, the net balance stayed neutral and suggested house prices had levelled out for now.
Regionally, Yorkshire and the Humber and the South West showed more negative readings for house prices, while Northern Ireland and Scotland reported increases.
In the near term, surveyors continued to suggest house price growth would remain negative, with a score of minus 21%, suggesting there could be downward pressure on prices in the next three months.
This is expected to turn around in the next 12 months, however, with a net balance of 39% of respondents forecasting house price growth, and this is expected to occur across most regions except Yorkshire and the Humber, where a slight decline was predicted.
Simon Rubinsohn, chief economist at RICS, said: “Although geopolitical developments haven’t helped the mood music in the residential market over the past month, the main reason for the dip in the key RICS sales activity metrics lies in the expiry of the stamp duty holiday at the end of March.
“Near-term expectations indicators suggest the subdued trend will persist for the next few months at least, but looking beyond this, the results are more encouraging, reflecting in part the prospect of deeper interest rate cuts than previously anticipated.”
Rental demand rises
In the lettings market, respondents suggested an increase in tenant demand over the three months to April, with a score of 14%. This was up on the score of 3% given for the three months to January.
This coincided with a continued fall in new landlord instructions, with a weaker reading of negative 26%, down from negative 19%.
Expectations for rent in the near term received a reading of 25%, suggesting rises in prices in the next three months.
Rubinsohn said: “More problematic, however, is the negative feedback in the survey around supply in the rental market. With demand continuing to grow, there appears little relief in store for tenants in terms of the upward pressure on rents.
“Critically, even with the rise in the build to rent to sector, the shortfall of affordable rental stock looks set to remain substantial.”
