The UK housing market experienced a loss of momentum in September, with buyer enquiries weakening for the first time since March, according to RICS. Agreed sales also fell, and expectations for the coming months deteriorated.
These figures coincide with a warning from Moneyfacts that increased fixed mortgage rates have added nearly £2,000 annually to repayments on a typical £250,000 mortgage. A borrower with such a mortgage over 25 years would now pay approximately £1,611 a month, based on an average five-year fixed rate of 6.00%, up from 4.91% at the start of 2026.
Lloyds reported that UK house prices remained unchanged in September, both monthly and annually, with the average property price standing at £298,441. However, Lloyds also noted that new enquiries from prospective buyers reached their highest level since February, contrasting with RICS's report of renewed weakness.
The lettings market, however, presented a different picture, with tenant demand increasing for the third consecutive month. Landlord instructions remained negative, contributing to pressure on rental supply, and a net balance of +37% of respondents expect rents to rise over the next three months.