Rate of market decline slows in June Published: 16/07/2008

There were fewer buyer enquiries and newly agreed sales in June, according to new figures from the Royal Institution of Chartered Surveyors (Rics), but sentiment is improving.

The organisation's monthly survey of its members reveals that the decline in housing market activity appears to be slowing, as more instructions were noted in London last month than during May.

The net balance of surveyors nationally reporting a fall in prices rather than a rise improved from minus 92.2 per cent in May to minus 88 per cent in June, while the level of distressed sales remained low.

Despite widespread expectations of further price falls in the coming months, the proportion of surveyors predicting a drop in sales in the next three months more than halved from minus 15 per cent to minus seven per cent.

The average estate agent sold just over 15 homes in the three months to June, which equates to around five property sales per month per agent, the lowest figure recorded by Rics since records began.

Though the number of transactions continues to fall, many buy-to-let investors with cash to play with are reportedly taking advantage of reduced asking prices, helping to slow the falling rate of new buyer enquiries.

"With demand so low, would-be buyers are negotiating from a position of strength," observed Rics spokesperson Jeremy Leaf.

"Even in a weak market there are always opportunities for investors and buyers to profit and some are starting to circle for bargains."

The lack of serious mortgage arrears and high level of employment in the UK continues to underpin the property market, which is still proving resilient in many areas.

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