The housing market ended 2022 with buyer demand falling for the eighth month in a row, according to surveyor’s body Rics, which it says points towards activity “remaining on this downward trend over the coming months”.    

The net balance reading for new buyer enquiries came in at -39% in December — down marginally from -38% from the previous month — signalling an ongoing weakness in new buyer demand across the UK, the Rics UK Residential Survey reports.   

It adds that metrics tracking property sales, instructions to sell, as well as price trends also fell.  

The number of fresh property listings coming onto the sales market declined, with the latest net balance of -23% representing the weakest return for this indicator since September 2021.  

Agreed sales across the country reported a net balance of -41% among survey participants, compared to -36% in November.  

The study says: “This downward sales trend became clearer across virtually all parts of the UK over the month, with respondents in the North West of England, Scotland, Wales and London all citing a particularly quiet month for activity in our latest results.”  

It adds that house prices across the UK reported a fall by a net balance of -42% of respondents last month, compared to -26% posted in November “and indicates the downward price trend gaining further traction”.  

The survey says: “When separated, all regions across England are now seeing prices soften to some degree, with feedback pointing to East Anglia and the South East seeing the sharpest rate of decline in net balance terms.  

“Respondents across the UK envisage some pull-back in prices in the three months ahead.”  

The body’s December survey also included an extra set of questions looking at the impact of energy efficiency ratings on buyer behaviour.  

It found that 40% of respondents said they were seeing greater interest from buyers in homes that are more energy efficient, although this was outweighed by 60% who said they do not see this trend.  

It also noted that 41% of respondents said that sellers were attempting to attach a price premium on homes with a high energy efficiency rating.  

By the same token, 61% of contributors reported that highly energy-efficient homes were holding their value in the current market.  

In the December lettings market, tenant demand increased according to a net balance of +28% of contributors.  

But the study says: “This is the lowest reading since February 2021 and suggests that the pace of demand growth is slowing across the rental market.”  

It also noted that new landlord instructions remain on a downward trend, with a net balance of -24% of respondents seeing a decline last month.  

The survey says that near-term expectations continue to point to rents being pushed higher, with the net balance of respondents anticipating an increase in rent remaining unchanged from last month at +42%.  

The Royal Insitute of Chartered Surveyors chief economist Simon Rubinsohn says: “The latest Rics Residential Survey highlights the emerging challenges in the housing market as new buyers grapple with more costly finance terms and uncertainty over the outlook for the economy.  

“This is reflected in forward-looking Rics indicators around both prices and activity. However, some signs of an easing in inflation pressures more generally could provide a chink of light, particularly for those looking to take their first step on the property ladder.  

“Meanwhile, feedback around the lettings market once again demonstrates the need for some concerted thinking about how to create a thriving sector that caters for both the private and ‘affordable’ renter”.  

The Royal Insitute of Chartered Surveyors senior specialist in land and property standards Mairead Carroll adds: “It will be fascinating to see how important energy efficiency becomes to buyers over the next twelve months. We welcome the timely addition of energy-related questions to our residential survey as the cost-of-living crisis remains a growing concern.  

“Anecdotally, we have heard that home buyers can be left confused by energy performance certificates and the recommendations made, unsure what areas to prioritise in terms of improving the energy efficiency of their home.  

“Rics welcomed the independent Net Zero Review [published on 13 January], if buyers and sellers are to have confidence in energy performance certificates then reform is required”.