The latest Royal Institution of Chartered Surveyors housing market snapshot suggests there’s no sign yet of a housing market recovery.

The sentiment index produced by RICS shows new buyer enquiries with a net balance of -34% in May, unchanged from the previous month. 

While this continues to point to weaker demand, the institution says that at least it marks the first time since January that the headline demand indicator has not moved further into negative territory.

Agreed sales also remained subdued, posting an unchanged net balance of -37%. 

Although this shows that more respondents are still seeing sales fall rather than rise, the unchanged reading suggests the pace of decline is no longer intensifying.

However, transactions are taking longer to complete. 

The average time from listing to completion rose to 21.5 weeks, the longest duration recorded since the dataset began in 2017.

House prices continued to edge lower at the headline level, with the net balance holding at -35% for the second consecutive month. 

Respondents in the South East and East Anglia reported more pronounced downward pressure on prices, while Northern Ireland continued to see firm price growth.

Looking ahead, RICS says short-term sentiment remains cautious. 

Price expectations remain weaker in the near term, with a net balance of -45% expecting prices to fall over the coming three months. 

However, expectations for the year ahead edged into positive territory at +6%, suggesting some respondents see conditions improving further out.

The rental market remains under pressure. Tenant demand rose, with a net balance of +14% of contributors reporting an increase, while landlord instructions remained firmly negative at -28%. 

Rent expectations also strengthened, rising to +36%, the highest reading since May last year.

Tarrant Parsons, RICS Head of Market Research and Analysis, 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.

“The decline in consumer price index 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. 

“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.”