The UK property market entered the height of summer with little evidence of a decisive turnaround, as the latest residential survey from the Royal Institution of Chartered Surveyors (RICS) pointed to weak buyer interest, sluggish sales and continued pressure on prices. Although some measures have moved away from the worst levels seen earlier in the year, the overall picture remains one of hesitation rather than recovery, with surveyors reporting that confidence is still being held back by expensive mortgage finance, political uncertainty and wider economic concerns.

In July, new buyer enquiries recorded a net balance of -28%, unchanged from June. That reading remains firmly negative, meaning more surveyors continued to see demand fall rather than rise. Even so, the figure is less severe than the -41% reported in March, suggesting the market may no longer be deteriorating at the same pace. The improvement, however, is not strong enough to suggest buyers are returning in large numbers. Instead, many potential purchasers appear to be waiting for greater clarity regarding borrowing costs, household finances and the broader direction of the economy before committing to a move.

Agreed sales told a similar story. The July balance stood at -30%, also unchanged in the previous month and only modestly better than the recent low of -37% recorded in April. This indicates that transactions are still hard to complete, even where buyers and sellers are present in the market. Higher mortgage rates have narrowed affordability, while price expectations between sellers and buyers remain difficult to align. In practical terms, many households may want to move, but fewer are able or willing to do so at current financing costs.

RICS chief economist Simon Rubinsohn described the outlook among surveyors as downbeat, noting that the summer market has been unusually quiet even allowing for seasonal patterns. His assessment points to a combination of global tensions, domestic political uncertainty and the cost of mortgages as factors weighing on sentiment. These pressures do not just affect individual buyers; they also influence developers and housebuilders, who are unlikely to accelerate construction or increase land buying when forward-looking indicators remain weak.

One area showing a marginally better tone was the flow of homes coming onto the market. New vendor instructions recorded a net balance of -4% in July, a notable shift from -23% in June. This suggests that the decline in new listings may be easing, although the pipeline still looks constrained. Market appraisals, which compare current activity with the same period last year, returned to a positive balance of +19%, indicating that some sellers may be exploring their options even if they are not yet rushing to list. For buyers, this means choice may improve gradually, but not enough to transform market conditions quickly.

Prices remain under pressure across much of the country. The national house price balance came in at -30%, a slight improvement from -32% in June and from the recent low of -35% in April. While the direction is marginally less negative, the figure still shows that price falls are more common than price rises. Regional differences are especially important. London, the South East and the South West continue to report weaker price balances than the national average, while Northern Ireland remains a notable exception, with surveyors still seeing prices rise. Scotland, after a period of stronger growth, appears to be losing some momentum as conditions flatten.

Short-term price expectations also remain subdued. A net balance of -31% of respondents expect prices to weaken over the next three months. Looking further ahead, sentiment is slightly more balanced, with the 12-month price expectations measure standing at +4%. That modestly positive reading suggests some surveyors believe the market could stabilise over the longer term, but it is far from a strong vote of confidence. London appears particularly fragile, with year-ahead price expectations deteriorating to -23% in July, down from -10% previously.

Estate agents and property finance specialists are seeing the same uncertainty on the ground. Jeremy Leaf, a north London estate agent and former RICS residential chairman, suggested that the market is not as inactive as it was a few months ago, but still lacks a clear catalyst for renewed momentum. With fewer listings available, committed buyers may have less choice, which can speed up decision-making in selected cases. Yet the market remains highly price sensitive, and attracting buyers is still difficult when mortgage costs may rise or remain elevated.

Gareth Lewis of MT Finance offered a similarly cautious view, characterising the market as stagnant, with low transaction volumes and limited competitive pressure. In stronger pockets, the right property in the right location can still perform well, but those examples appear to be the exception rather than the rule. Without more buyers and sellers entering the market, prices are unlikely to move dramatically in either direction, leaving many transactions dependent on careful pricing and realistic expectations.

The rental sector adds another layer of strain. RICS feedback indicates that new landlord instructions remain weak, with some landlords reducing their exposure or exiting the sector. Regulation, taxation and affordability concerns are all influencing behaviour, and a further decline in rental supply could keep upward pressure on rents even if tenant demand has softened. For households unable to buy, a tighter rental market may make it harder to save for a deposit, reinforcing the affordability challenges already affecting the sales market.

Tom Bill of Knight Frank noted that conditions are less volatile than last summer, but familiar obstacles remain. Mortgage costs continue to limit demand, while uncertainty over taxation and government policy gives buyers another reason to wait. Even though some proposed measures have been ruled out, the possibility of smaller tax changes still creates caution. At the same time, global instability makes a meaningful reduction in borrowing costs less certain, keeping affordability at the centre of the market’s problems.

Overall, the latest survey suggests a market that is not collapsing, but is struggling to regain energy. Demand has improved from the weakest point earlier in the year, listings are showing tentative signs of stabilising, and longer-term expectations are slightly less gloomy. However, those shifts are incremental rather than transformative. Until mortgage affordability improves, political and tax uncertainty eases, and more confidence returns among buyers, sellers and landlords, the UK property market is likely to remain subdued. The coming months may show whether the recent easing in pessimism can become a genuine recovery, but for now the evidence points to a slow, uneven and cautious market rather than a meaningful rebound.