The latest RICS UK Residential Market Survey, for August 2016, has found that confidence is starting to recover following the immediate reaction to the EU Referendum, as the UK residential property market experienced a slight upturn in August.

The August 2016 Survey showed a pick-up in confidence, following the significant drop in activity and price expectations in the wake of the EU vote. At the national level, both prices and sales are expected to rise over both the next three and twelve months as activity in the market stabilises.

Last month, 12% more respondents nationally reported an increase in prices (up from +5% in July). Although this reverses a run of five consecutive surveys in which the net balance has decelerated (from a high of 50% in February), it is still the second weakest reading over the past 18 months.

In London, the price net balance remained in negative territory for a sixth consecutive month, with 30% more respondents noting a fall in prices over the period, as opposed to a rise. By way of contrast, prices increased in most other parts of the UK.

Looking ahead, price expectations over the next three months nationally moved into positive territory for the first time since April with 10% more respondents now anticipating an increase over the period.