Expectations for the near-term outlook also firmed. Respondents’ sales expectations balance rose to -16, well above the recent low of -34 recorded in March. Looking further ahead, survey contributors expect sales volumes to hold broadly steady over the coming year, with a net balance of +1.
Supply conditions tightened further, however. New instructions to list homes for sale fell to -23 from -10 the previous month, the weakest reading in more than a year. Respondents also reported a decline in market appraisals, pointing to a constrained pipeline of new stock in the months ahead.
House prices remained under downward pressure nationally. The headline price balance came in at -33, broadly in line with -34 in May and -35 in April. Respondents in the South East and South West of England reported steeper price falls than the UK average, while Northern Ireland and Scotland continued to buck the trend with more positive readings.
Near-term price expectations improved slightly, moving to -32 from -44 the previous month. Over a 12-month horizon, sentiment turned more positive, with a net balance of +8 of respondents now anticipating price growth, up from +6 previously.
The findings come against a backdrop of heightened uncertainty. Conflict in the Middle East pushed oil and gas prices higher earlier in the year, adding to inflationary pressure and denting expectations for Bank Rate cuts. A ceasefire between the US and Iran has since been agreed, though tensions have resurfaced in recent days. Domestic politics have added a further layer of uncertainty following prime minister Keir Starmer’s resignation.