US EditionRising costs and global shocks are stopping buyers
RICS said buyer inquiries fell at the weakest pace since August 2023 as 39% of surveyors reported declines and sales activity also softened.
- The Royal Institution of Chartered Surveyors said the UK housing market lost momentum in March as rising borrowing costs and geopolitical uncertainty weighed on buyer confidence, with a net balance of 39% of professionals noting falling new buyer inquiries.
- Rics head of market research and analysis Tarrant Parsons noted the shift stemmed from macro fallout from the Middle East conflict, while Moneyfacts said on Wednesday mortgage rates are likely to remain higher for "some time yet."
- Agreed sales deteriorated with 34% of professionals seeing falls in March, while 43% expect house prices to decline over the next three months and unsold stock rose to an average of 47 properties.
- Scotland and Northern Ireland reported rising prices, contrasting with weaker readings in London and the South East, while Anthony Filice of Kelvin Francis in Cardiff said concerns for first-time buyers "have not yet really materialised."
- Looking 12 months ahead, a net balance of just 1% of professionals expect sales to weaken, indicating a broadly flat market, though the path ahead hinges on whether "recent surges in oil and energy costs begin to reverse.
17 Articles
17 Articles
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Rising borrowing costs knock housing buyer demand - Credit Connect
Latest data from the Royal Institution of Chartered Surveyors (RICS) has found the market losing momentum as rising borrowing costs and wider geopolitical uncertainty weighed heavily on buyer confidence and sales activity. New buyer enquiries fell to a net balance of -39%, down from -29% in February, marking the weakest reading since August 2023. Agreed sales also deteriorated, dropping to a net balance of -34% from -13% the previous month. The …
Rising borrowing costs and political uncertainty impact Scottish housing market
Shutterstock RISING borrowing costs and geopolitical uncertainty negatively impacted the Scottish housing market in March, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey. Whilst prices were reported to have continued to rise, according to a net balance of +36% of respondents, demand seems to have softened. A net balance of -7% of respondents in Scotland reported new buyer enquiries fell through …
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