The UK property market is showing early signs of stabilization, according to the Royal Institution of Chartered Surveyors (Rics). In August, the decline in buyer demand and property sales slowed down, marking the fifth consecutive month of improvement. A net balance of 19% of property professionals reported a drop in new buyer inquiries, the lowest pessimism since January. Similarly, agreed sales saw a net balance of 17% reporting a decline—the least negative reading since February and a significant rebound from April, when 38% of professionals had reported falling transactions. Looking ahead, expectations for property sales in the next three months have moved closer to neutral ground. A net balance of 3% of professionals now expect a reduction in activity, compared to 13% in July. For the next 12 months, a positive net balance of 6% of professionals anticipate higher sales volumes, up from 3% in the previous survey. This suggests a modest recovery in market confidence, though still cautious. House prices continue to face downward pressure, with a net balance of 28% of professionals reporting price declines, compared to 29% in July. This is a slight improvement from April’s net balance of 35%. London remains the most affected area, with prices falling more than the national average, though there was some improvement from July. In contrast, Northern Ireland continues to see rising prices, while the North West of England experiences gentle price growth. The number of new property listings for sale remained largely unchanged, with a net balance of zero in August, compared to minus 2% in July. In the rental market, rising tenant demand and limited housing supply are pushing rents upward. A net balance of 44% of professionals now expect rents to increase over the next three months, up from 33% in July. Over the next 12 months, professionals expect UK rents to rise by approximately 3% on average. Rics head of market research and analysis, Tarrant Parsons, noted that August’s results show a market gradually finding its footing, with key indicators becoming less negative over recent months. However, he warned that any recovery remains fragile, with uncertainty around borrowing costs and the upcoming October budget still posing challenges. Despite recent stability, short-term obstacles remain significant. The Rics report was released alongside data from property website Rightmove, which recorded a "back-to-school bounce" in the first week of September. Buyer demand increased by 5% between September 1 and 5 compared to the same period last year, far outpacing the average annual increase of 0.4% seen in the past five years. Rightmove’s Colleen Babcock said the rise in activity is a positive sign after a summer marked by heatwaves and holiday distractions. She noted that buyers are returning to the market as autumn approaches, which is encouraging for the property sector.