The latest RICS housing market report reveals deepening concerns about the direction of the property market.

Recent RICS surveys of member estate agents points to sluggish sales, but the mood amongst firms has worsened.

And now the organisation is describing “a notable cooling” and a “nationwide pullback” ahead of the Budget this month, and there is also a risk of a “deepening slowdown”.

Demand down

Last month buyer demand, sales activity and new instructions all fell further into negative territory.

New buyer enquiries recorded a net balance of -24%, down from -21% in September, and the weakest reading since April.

The decline was broad-based across regions, suggesting a nationwide pullback as households delay decisions.”

“The decline was broad-based across regions, suggesting a nationwide pullback as households delay decisions,” RICS says.

Agreed sales remained subdued with a net balance of -24%, slipping from last month’s -17%.

Report’s other main points

• New vendor instructions posted their third consecutive negative reading at -20%, the weakest since 2021.
• Appraisal activity softened to -37%
• The national price balance stands at -19%
• Over the next three months, prices are expected to soften slightly (net balance -12%), although 12-month expectations are back in positive territory (+16%).
• Tenant demand has flattened to a -4% net balance; however, landlord instructions continue to fall (-33%).

Turning point

Tarrant Parsons (main image), Head of Market Research and Analysis at RICS, says: “The coming months will be crucial in assessing how the market responds to the Budget, which could prove a turning point in either direction.

“If the measures announced add further pressure to activity, they risk deepening the current slowdown.”

Tom Bill, Head of UK Residential Research at Knight Frank, says: “Unless there is a pressing need to move, some buyers and sellers have understandably hit the pause button.”

Read the full RICS survey here

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