UK housing market shows tentative stabilization in May

The UK housing market showed tentative signs of stabilization in May, though activity remained deeply subdued as higher borrowing costs and economic uncertainty continued to weigh on buyer demand. According to the latest survey from the Royal Institution of Chartered Surveyors, key indicators for new buyer enquiries and agreed sales stopped deteriorating for the first time since January, suggesting the recent sharp downturn may be finding a floor.

The survey, published on Thursday, June 11, reported a net balance of minus 34 percent for new buyer enquiries, unchanged from April. Agreed sales also held steady at a net balance of minus 37 percent. While both metrics remain firmly in negative territory, indicating more surveyors are seeing declines than increases, the lack of further decline points to a potential stabilization. House prices continued to fall, with a net balance of minus 35 percent of professionals reporting declines for a second consecutive month. Regional disparities were evident, with the South East and East Anglia seeing the weakest price trends, while Northern Ireland continued to report growth.

Tarrant Parsons, head of market research and analysis at RICS,...