House Sales Outlook Hits Three-Year Low as Mortgage Rates Soar
Surveyors said 17% expect sales to fall, the weakest outlook since July 2023, as higher mortgage rates curb buyer demand.
- On Thursday, The Royal Institution of Chartered Surveyors reported the weakest short-term outlook for house sales since July 2023, with a net balance of 17% of professionals expecting sales to fall over the next 12 months.
- Rising mortgage rates have compressed demand, with RICS reporting the gauge of new buyer enquiries held at-24 as Tarrant Parsons, head of market research at RICS, cited persistent macroeconomic challenges.
- Property professionals reported falling house prices with a net balance of 36%, while agreed sales fell to-24 from-18, marking the weakest reading in three months.
- Last week, The Bank of England raised interest rates to 4% from 3.75%, its first hike in three years, compounding pressure on the property sector.
- In the rental market, tenant demand strengthened as landlords reduced properties on the market, pushing expectations for rent growth to +41, the strongest since early 2024.
15 Articles
15 Articles
House sales outlook hits three-year low as mortgage rates soar
Housing sales are forecast to have fallen to the lowest point in over three years as increased mortgage rates drive down buyer demand and the property market continues to cool. According to the Royal Institution of Chartered Surveyors’ (RICS) latest findings in its UK Residential Market Survey, the outlook for sales has slipped to the [...]
UK house sales outlook is darkest since 2023, RICS says
British property surveyors were the most downbeat about the short-term outlook for house sales in more than three years in October, as rising interest rates for mortgages compressed demand, a survey showed on Thursday.
Evening Standard
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.
Interest rates impact Scottish housing market, but underlying demand remains 'good'
NEW research has revealed that higher mortgage interest rates appear to be impacting the Scottish housing market. Respondents to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey reported lower levels of sales and buyer enquiries last month. A net balance of -23% of respondents in Scotland said sales fell in the October […]
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