(Sharecast News) - House prices remained subdued in June, a closely-watched survey showed on Thursday, as the cost of living and wider geopolitical tensions weighed on sentiment.
The latest residential market survey from the Royal Institution of Chartered Surveyors showed house prices largely unchanged month-on-month, with a negative balance of -33. The balance was -34 in April and -35 in May.

New buyer enquiries improved on May's -34 but remained in negative territory at -29. Newly-agreed sales stood at -32.

Looking ahead, and near-term price expectations were also subdued. However, at -32 they were less markedly negative than May's -44, and longer-term, the 12-month expectations balance ticked up two points to 8.

Near-term sales expectations also improved, at -16, well above March's recent low of -34.

The UK housing market started 2026 on the front foot but has faced a number of headwinds. The outbreak of war in the Middle East at the end of February sent oil and gas prices surging, reigniting inflation fears, adding to the cost of living and dampening Bank Rate expectations.

The US and Iran agreed a fresh ceasefire last month, but tensions remain high. On Wednesday, Donald Trump called Tehran's leaders "scum" and claimed the fragile peace was "over", sending oil prices once again sharply higher.

Domestic political uncertainty has also spiked following the resignation of prime minister Keir Starmer.

Tarrant Parsons, head of market research and analysis at Rics, said: "June's survey result offers some cautious encouragement that the worst of the slowdown in market activity may be beginning to pass.

"That said, any nascent improvement remains fragile, and is now being tested by renewed political uncertainty on the domestic front.

"While the Bank of England left interest rates unchanged, uncertainty around the outlook for inflation and borrowing costs continues to weigh on sentiment. Until there is greater clarity over both the political backdrop and the path of interest rates, house market activity is likely to remain relatively subdued."

A net balance is the proportion of respondents reporting a rise in prices minus those reporting a fall. The survey sample covered 420 branches coming from 220 responses

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