House prices in the UK are still rising, but the pace of growth is slowing amid a drop in interest from potential buyers.
In the latest monthly survey by the Royal Institution of Chartered Surveyors (RICS), 27% of professionals reported a fall in interest from would-be house buyers in June — the third consecutive month that new buyer enquiries have declined.
A shortage of properties coming on to the market is continuing to hamper activity, and this lack of stock that means that house prices have continued to climb despite the cooling in demand.
Two-thirds (65%) of surveyors said they had seen an increase in house prices. This is down from than the recent April high of 78% but still well above the long-term average of 13%.
Looking further ahead, 37% said they expected house prices to continue rising in the next 12 months.
In the lettings market, rents are forecast to rise due to the continued imbalance between supply and demand.
An increase in tenant demand was reported by 36% of surveyors in June, while 11% saw a fall in the number of new landlord instructions. Just over half (52%) of respondents predicted that rents will rise over the coming three months.
