Momentum in the housing market stayed weak in September, with both sales and buyer demand down for the third month in a row, according to the latest RICS UK Residential Survey.
Figures showed new buyer enquiries slipped to -19% and agreed sales stood at -16%.
The national price balance was -15%, with the South East and East Anglia showing the biggest drops, though Scotland and Northern Ireland still managed small price rises.
New listings slowed again, hitting -15%.
In the rental sector, tenant demand was flat at -1% but landlord instructions fell sharply to -38%, the lowest since May 2020.
Rents were expected to rise around 3% over the next year.
Surveyors across the country said there was no sign of an immediate pick-up in sales, with both short and longer-term expectations staying negative.
Even so, a net balance of +12% expected prices to go back up over the next year.
The gap between rental demand and supply remained wide, with more landlords leaving the sector due to extra regulation and higher costs.
Survey respondents said this would push rents up in 2026 and make things harder for tenants.
Many surveyors said they were concerned about the upcoming November Budget.
Additionally, there was growing caution from buyers and sellers, with affordability and nerves about new taxes holding people back.
Tarrant Parsons, head of market research and analytics at RICS, said: “The housing market continues to struggle for momentum, with seemingly no clear catalyst on the horizon to spark a turnaround over the near-term.
“Buyer demand remains subdued, while agreed sales are still on a downward trend, reflecting a broader hesitancy in the market.
“Ongoing uncertainty around potential measures in the upcoming Budget is also likely adding to the prevailing cautious sentiment.”
Jeremy Leaf, a north London estate agent and former RICS residential chairman, said: “New buyer enquiries, agreed sales, listings and prices are all continuing to soften – but not correct.
“The prospect of higher – not just for property – taxes in the Budget is compromising confidence other than for those who are particularly motivated to move.
“Looking forward, we see little likelihood of change at least until after the end of November.”
Leaf added: “However, in similar circumstances previously, we have often found the weaker the uncertainty, the stronger the recovery.”
“The imminent arrival of the Renters’ Rights Bill and other regulations, which are likely to add to costs and difficulty of regaining possession, has given further impetus to landlords minded to sell.
“Conversely, the amount of choice for buyers – often of smaller flats and houses – as well as weaker demand has made it more of a struggle than many anticipated so some are returning to lettings.”
He said: “Demand remains steady so there’s a strong possibility that rents will resume a more rapid upward trajectory sooner rather than later.”
Tomer Aboody, director at MT Finance, said: “With constant negativity surrounding the upcoming Budget, both buyers and sellers alike are either biding their time to see what materialises, or are trying to be active but at lower asking prices.
“With Kemi Badenoch announcing that a new Conservative government would axe stamp duty on primary residential purchases, could this possibly persuade Rachel Reeves that stamp duty is a huge barrier to the market and should be reduced or potentially restructured?”
Reaction
Emma Cox, MD of Real Estate at Shawbrook:
“Reduced buyer demand and declining sales activity remain symptoms of an uncertain market landscape.
“Although interest rates are more stable, and there are signs of house prices cooling, buyers are not pushing ahead with deals. With the Autumn Budget approaching, it’s likely that first-time buyers in particular are holding off in the hope that some form of incentive will be introduced – especially in the wake of the removal of stamp duty exemption earlier this year.
“While rental demand has largely stabilised, it remains high overall – which should encourage landlords, as prospective buyers continue to turn towards the rental market. It signals that opportunities remain for professional landlords to add to their portfolios and cater for ongoing tenant demand.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“New buyer enquiries, agreed sales, listings and prices are all continuing to soften – but not correct.
“The prospect of higher – not just for property – taxes in the Budget is compromising confidence other than for those who are particularly motivated to move. Looking forward, we see little likelihood of change at least until after the end of November. However, in similar circumstances previously, we have often found the weaker the uncertainty, the stronger the recovery.”
Tomer Aboody, director of specialist lender MT Finance:
“With constant negativity surrounding the upcoming Budget, both buyers and sellers alike are either biding their time to see what materialises, or are trying to be active but at lower asking prices.
“With Kemi Badenoch today announcing that a new Conservative government would axe stamp duty on primary residential purchases, could this possibly persuade Rachel Reeves that stamp duty is a huge barrier to the market and should be reduced or potentially restructured?”
