Rics surveyors report fall in sales and house prices in June

The UK property market is still subdued with a lack of demand and limited supply of new properties affecting the market, according to a new report out from the Royal Institute of Chartered Surveyors (Rics).

Surveyors reported a ten per cent drop in new buyer enquiries and said that the housing market is in the doldrums and has failed to show any improvement since the ending of the stamp duty holiday at the end of March.

Newly agreed sales have slowed for the third consecutive month with 12 per cent more surveyors reporting falls rather than rises in new home sales.

According to Rics surveyors, house prices are continuing to fall with 22 per cent more surveyors recording falls in prices rather than rises, the weakest reading since October 2011.

The outlook is bleak too, with a net balance of 19 per cent of surveyors expecting to see prices continue to fall.

The only bright spot is that 11 per cent more respondents expect sales to increase rather than fall during the next quarter.

London bucked the trend and is close to operating in a market of its own. Surveyors reported that prices had risen in June, though at a slower rate than earlier in the year.

Simon Rubinsohn, RICS chief economist said: "The housing market did not manage to turn a corner last month and activity remained in the doldrums.

"Although there is some positivity that the amount of sales going through is going to see an increase, it is unlikely that we will see any real movement until purchasing a property is more affordable and accessible for the likes of first-time buyers."

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