Most parts of the UK are seeing a noticeable deterioration in buyer demand since the conflict began, according to the Royal Institution of Chartered Surveyors (RICS) housing market survey.
Sales activity measured by agreed sales has also weakened sharply, with sentiment shifting from slightly negative in February to firmly negative in March – again representing the softest reading since the summer of 2023.
Looking ahead, surveyors’ near-term sales expectations have turned significantly more pessimistic, as far more respondents now anticipate a further contraction in sales activity over the coming months. The 12-month outlook is one of a broadly stagnant market rather the moderately positive view expressed in February.
A slight decline in the number of homes being listed for sale was noted. However, with the volume of appraisals reported to be flat in March – a future indication of new listings – the pipeline of sellers is unlikely to increase in the near term.
However, because demand is weakening, the average number of homes on agents’ books has risen from 45 at the start of the year to 47.
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Falling house prices
House price reductions have become more widespread, with more negative sentiment recorded by surveyors operating in London, East Anglia, the South East and South West of England.
Respondents in Northern Ireland and Scotland, however, continue to report rising prices.
Going forward, surveyors’ expectations for near-term house price activity at a UK-wide level have declined sharply, signalling that downward pressure on values is anticipated to build over the coming three months.
According to the latest house price index from Halifax, house prices fell by 0.5% in March following a 0.3% rise in the previous month, as rising borrowing costs and uncertainty over future rate rises caused hesitation among buyers.
Annually, house price growth slowed from 1.2% in February to 0.8% in March. The average UK property price is £299,677.
