Experts give bleak prediction for UK housing market with sales set to drop to lowest level in years

Housing market experts are bracing for a weaker year ahead for home sales, with transaction expectations dropping to their lowest level in over three years, according to surveyors.

The Royal Institution of Chartered Surveyors (RICS) said a net balance of 17 per cent of professionals expect sales to fall over the next 12 months, marking the most downbeat outlook since July 2023.

RICS reported that higher mortgage rates continue to weigh on buyer demand.

A net balance of 24 per cent of property professionals reported new buyer inquiries falling rather than rising, according to the October survey. This was unchanged from September, with nearly all parts of the UK experiencing either falling or stagnant demand, RICS said.

Agreed sales also slipped, with a net balance of 24 per cent of respondents reporting a decline, marking the weakest reading in three months. A net balance of 36 per cent of property professionals saw house prices fall, after values had previously shown signs of stabilising over the summer.

London, East Anglia, the West Midlands and the South East recorded weaker price trends than the general average, the report noted.

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 per cent expecting falls, deteriorating from a flat reading of zero previously.

The pipeline of new listings could also weaken, with fresh instructions to sell falling marginally overall during October after previously increasing.

In the lettings market, pressure on rents strengthened as tenant demand saw modest growth while landlord instructions continued falling.

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."