The latest RICS UK Residential Property Survey for March 2025 points to a further softening in the housing market, with both buyer enquiries and agreed sales slipping into more negative territory.
According to the survey, new buyer enquiries fell sharply to a net balance of -32%, down from -16% in February, marking the weakest demand sentiment since September 2023. Agreed sales also deteriorated slightly, with a net balance of -16% compared to -13% the previous month.
The initial uplift in market activity seen earlier in the year, driven by efforts to complete transactions ahead of the April 1st Stamp Duty change, appeared to fade by the end of March, with professionals growing more cautious about short-term prospects. Three-month sales expectations turned negative, while twelve-month projections remained more upbeat, with a net balance of +11% of respondents expecting volumes to rise over the year ahead.
On pricing, the net balance reading for house prices eased to +2%, down from +20% in January and +11% in February. The survey suggests that national price growth has largely flattened in recent months, though regional variation remains. Respondents in Scotland and Northern Ireland continued to report greater resilience compared to other areas.
In the lettings market, tenant demand picked up again, with a net balance of +20% citing a rise — the first monthly increase since October 2024. Meanwhile, landlord instructions continued to decline (net balance -24%), widening the supply-demand gap and pushing rental expectations higher. A net balance of +31% of survey participants now anticipate rental prices rising over the next three months.
RICS also flagged potential headwinds from international developments, with newly imposed US tariffs and the possibility of retaliatory measures adding a layer of uncertainty to the UK’s macroeconomic outlook.
Simon Rubinsohn, chief economist at RICS, said: “The expiry of the stamp duty break was always going to lead to a pause in activity in the sales market. However, the latest results, and indeed the anecdotal remarks from respondents to the survey, suggest that the shift in sentiment has been aggravated by the slew of negative macro newsflow over the past few weeks.
“Looking forward, the impact on the market will in no small part depend on how the economy is affected by the emerging trade war and the response of the Bank of England to the shifting environment. For now, it is noteworthy that the longer-term RICS expectations metrics are still relatively resilient, but they have the potential to be blown off course if the tariff headwinds intensify.”
