The Royal Institution of Chartered Surveyors (Rics) said property professionals reported that new buyer enquiries fell in May, with a net balance of 7% reporting falls rather than rises
Demand from prospective house buyers fell in May 2022 as the cost of living crisis continues to squeeze UK households.
However, despite the drop in buyer demand, house prices in the short term are expected to rise, according to surveyors.
The Royal Institution of Chartered Surveyors (Rics) said property professionals reported that new buyer enquiries fell in May, with a net balance of 7% reporting falls rather than rises.
Sales expectations over the next three months are also predicted to be flat, looking over the next 12 months, expectations point to falling sales, with a net balance of 24% of professionals expecting falls rather than rises.
The survey said the figures suggested ‘there is little prospect’ of more homes coming onto the market in the immediate future.
Given this constrained supply, house prices will continue to rise.
All parts of the UK continue to see increasing prices, with growth exceptionally strong in Northern Ireland, Northern England and Wales.
Simon Rubinsohn, Rics chief economist, said: The increase in the cost of mortgage finance alongside growing concerns about the economic outlook is unsurprisingly having an impact, albeit a relatively modest one at this point, on buyer activity in the sales market.
Despite this, prices are viewed as likely to remain resilient into 2023, he said.
But as is often the case in these circumstances, the pressure is likely to be felt more visibly in transaction levels which are seen as likely to slow as the year wears on, he said.
Although a net balance of 42% of survey participants still envisage house prices being higher in a year’s time, this is down from 78% in February and is the most moderate reading seen since January 2021.
