Home sales outlook ‘deteriorates to weakest level in more than three years’
The Royal Institution of Chartered Surveyors’ report indicated subdued demand, falling agreed sales and further downward pressure on house prices.
Property professionals are bracing for a weaker year ahead for home sales, with the expected outlook for transactions at its weakest level in more than three years, according to surveyors.
The Royal Institution of Chartered Surveyors (RICS) said that looking at sales expectations for the 12 months ahead, a net balance of 17% of professionals are expecting sales to fall rather than rise, marking the most downbeat outlook since July 2023.
RICS said that higher mortgage rates are weighing on buyer demand.
A net balance of 24% of property professionals reported new buyer inquiries falling rather than rising, according to the October survey.
This was unchanged from September, with virtually all parts of the UK reporting either falling or stagnant demand, RICS said.
Agreed sales also fell back, with a net balance of 24% of property professionals reporting seeing a fall rather than a rise, marking the weakest reading in three months.
A net balance of 36% of property professionals saw house prices fall after prices had previously showed signs of having stabilised over the summer.
London, East Anglia, the West Midlands and the South East recorded weaker price trends than the general average, the report said.
Prices continued to rise firmly in Northern Ireland while modest growth was also reported in Scotland and the North West of England.
Property professionals also revised down their price expectations for the year ahead, with a net balance of 17% expecting prices to fall, deteriorating from a flat house price reading of zero previously.
The pipeline of new property listings could also weaken, with new instructions to sell falling marginally overall in October, having previously been increasing.
In the lettings market, pressure on rents strengthened as tenant demand saw modest growth while landlord instructions continued to fall.
RICS head of market research and analysis Tarrant Parsons said: “Home buyer demand remains subdued and respondents are bracing for a weaker year ahead for sales given the persistent macroeconomic challenges being faced.”