The UK housing market lost momentum in September as expectations of higher interest rates dented buyer confidence. Demand, contracted sales and short-term activity forecasts all deteriorated, the latest survey by the Royal Institute of Chartered Surveyors (RICS) shows.
The net balance of new buyer enquiries fell to -22% from -18% in August. This is the first decline in the indicator since March, but the result remains better than the low of -41% recorded six months earlier, writes estateagenttoday.co.uk.
For contracted sales, the balance fell to -18% from -16% a month earlier. However, the indicator remains less negative than the average of the last three months, which is -25%. Sales expectations for the next quarter have also worsened, to -6% from -3% in August.
More properties for sale, but pressure on prices
The data also showed a limited increase in supply. The net balance of new instructions for sale reached +6% - the first positive result since mid-2025. However, the RICS noted that property valuation activity remained below the levels of a year ago.
The national balance for house prices fell to -32% in September from -28% in August. This breaks four consecutive months of gradual improvement.
Regional differences remain significant. In most parts of England, price balances have worsened, with London noticeably weaker than the national result. Northern Ireland has continued to see price growth, while Scotland has seen a modest increase.
Expectations for next year are more stable
For the next three months, the net balance of price expectations is -24%, indicating that professionals anticipate further pressure in the short term. Over a 12-month horizon, the balance is 0% - a signal of an expectation of general stabilisation rather than a sharp decline or rise.
“The renewed rise in interest rate expectations has created a new headwind for the housing market“, said Tarrant Parsons, head of market analysis at RICS. He said buyers have become more cautious and the market could remain in a period of weak activity as households adjust to the prospect of higher borrowing costs.
The rental segment paints a different picture. Demand from tenants has increased by a net balance of +23%, while supply from landlords remains limited. The net balance of expectations for rent growth over the next three months is +37%, although it is lower than the +44% in August.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be found at imot.bg