The UK property market saw a slowdown in September, as rising interest rate expectations affected buyer confidence, according to the Royal Institution of Chartered Surveyors (RICS). New buyer enquiries declined, with the net balance falling to -22% in September from -18% in August. This marks the first weakening of the indicator since March.
Agreed sales also decreased, with the net balance slipping to -18% from -16%. House prices faced increased downward pressure, as the headline house price net balance fell to -32% from -28% in August, ending four months of improvement.
Regional variations were noted, with most parts of England reporting more negative price balances. London performed weaker than the national average, while Northern Ireland continued to see price rises and Scotland recorded modest price growth.
In the rental market, tenant demand continued to rise, with a net balance of +23% of respondents reporting an increase. Landlord instructions remained negative, contributing to expectations of further rental growth, with a net balance of +37% expecting rents to rise over the next three months.