Agreed sales were also unchanged from April, with a net balance of -37% and the reading for house prices remained at -35% for the second straight month

New buyer enquiries recorded a net balance of -34% in May, unchanged from April, meaning a greater number of respondents reported a drop in new enquiries than a rise.

Agreed sales were also unchanged from April, with a net balance of -37% and the reading for house prices remained at -35% for the second straight month.

Respondents in the South East and East Anglia reported particularly weak pricing conditions, while Northern Ireland continued to see firm house price growth.

Looking ahead, short-term sentiment remained cautious, although near-term sales expectations improved slightly to -25%, compared with -32% and -34% in the previous two surveys.

Over a 12-month horizon, sales expectations edged into positive territory, with a net balance of +2% expecting activity to improve.

Near-term house price expectations remained negative, with a net balance of -45% anticipating further declines over the next three months.

However, respondents were more optimistic over the year ahead, with a net balance of +6% expecting prices to rise.

The rental market continued to face a supply and demand imbalance.

Tenant demand rose, with a net balance of +14% of respondents reporting growth, while landlord instructions remained firmly negative at -28%.

As a result, rental expectations strengthened, increasing to a net balance of +36%, the highest figure since May 2025.

The survey also showed that transactions are taking longer, with the average period from listing to completion reaching 21.5 weeks — the longest since records began in 2017.

RICS head of market research and analysis Tarrant Parsons says: The latest survey data suggest the recent downturn in activity may be beginning to stabilise, with several key indicators broadly holding steady.

However, as they remain in negative territory, it would be premature to interpret this as the start of a recovery, he said.

The decline in CPI inflation to 2.8% in April provided some temporary relief, but the Bank of England has signalled that further inflationary pressures are likely as higher energy costs continue to pass through, he said.

He said: Against this backdrop, the prospect of further rate rises cannot be dismissed, and until there is greater clarity, market sentiment is likely to remain fragile.