A lack of growth in buyer demand combined with a drop in supply led to the UK property market staying flat in June, according to the latest Housing Market Survey from the Royal Institute of Chartered Surveyors (RICS).
It revealed that a net balance of zero per cent was registered for new buyer enquiries, while new instructions to sell dropped from a balance of 14 per cent in May to just one per cent last month. Around 27 per cent more surveyors reported a decline in property prices than an increase, with the same proportion forecasting that values will continue to fall in the coming months.
Despite this, London continued to outperform the rest of the UK, with 27 per cent more surveyors recording rises in prices rather than a decrease. Alan Collett, RICS housing spokesperson, said that while the countrywide market is set to see a "subdued picture" due to concerns over the economy and unemployment, the capital "remains a market apart with both sales and prices showing a greater degree of resilience".
May's RICS Housing Market Survey also revealed a relatively buoyant London property sector compared with the rest of Britain. Around 21 per cent more surveyors reported a rise in new buyer enquiries from those looking to invest in property in the city rather than a fall during the month, although there was evidence to suggest that higher prices were pushing more people to rent instead of buy.