Following the latest RICS residential market update, Shawbrook says a quieter housing market could create opportunities for buyers, with motivated sellers potentially more open to negotiation.
The latest RICS Residential Market Survey showed that new instructions to put properties up for sale fell further into negative territory in June, with the net balance dropping to -23% from -10% previously – the weakest reading in more than a year.
RICS said the decline in market appraisals also pointed to a potential constraint on the pipeline of homes coming to market in the months ahead.
Louise Apollonio, sales and distribution director, retail mortgages at Shawbrook, said: “For buyers, a quieter market can still create opportunities.
“Sellers who are keen to move may be more open to negotiation, so being prepared can make a real difference.”
The survey also showed that while new buyer enquiries remained negative, with a headline net balance of -29%, this was a marginal improvement on the -34% recorded in the previous month.
Apollonio said; “The market is still slightly subdued, but there are some encouraging signs that conditions are beginning to stabilise.
“Buyer demand and agreed sales remain in negative territory, yet both measures have improved compared with recent months, suggesting the slowdown may be starting to ease.”
She added: “While wider economic factors, including recent movements in swap rates, continue to influence the market, the overall direction of travel is looking more positive than it has done for several months.”
RICS members expressed ongoing concerns about the impact of inflation, the cost of living, domestic political uncertainty and global conflicts, with some sharing hopes that the cessation of the Iran War will boost market conditions.
Newly agreed sales also remained subdued, posting a net balance of -32%, compared with -35% previously.
Near-term sales expectations did improve however, reaching -16%, up from a recent low of -34% in March.
Looking further ahead, respondents expect sales volumes to remain broadly flat over the next twelve months, with a net balance of +1%.
Over the next twelve months, the outlook is modestly positive, with a net balance of +8% of respondents expecting prices to rise, up from +6% previously.
RICS head of market research and analysis, Tarrant Parsons, said: “June’s survey results offer some cautious encouragement that the worst of the slowdown in market activity may be beginning to pass, with several key indicators moving in a less negative direction for a second consecutive month.
“That said, any nascent improvement remains fragile and is now being tested by renewed political uncertainty on the domestic front.
“While the Bank of England left interest rates unchanged, uncertainty around the outlook for inflation and borrowing costs continues to weigh on sentiment, even if the recent decline in oil prices is a welcome development.
“Until there is greater clarity over both the political backdrop and the path of interest rates, housing market activity is likely to remain relatively subdued in the near term.”
