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UK homebuyer demand weakens for the first time since March

The September RICS housing survey shows weaker demand from prospective buyers as higher interest-rate expectations weigh on confidence. Agreed sales also softened, while new properties offered for sale increased. Price trends varied across the UK: most English regions weakened, whereas Northern Ireland and Scotland reported increases. Tenant demand strengthened for a third month despite a continued shortage of new landlord instructions.

Economics & Markets··Midday
A low garden wall and stone path lead to a green front door, with brick homes receding along the street.

Buyer enquiries lose momentum in September

RICS, the UK property professionals’ organisation, reported weakening demand in its September residential survey. New buyer enquiries declined for the first time since March. RICS research head Tarrant Parsons linked buyers’ renewed caution to expectations of rising interest-rate expectations.[1], [2]

The enquiries net balance fell from minus 18 per cent to minus 22 per cent. It remained less negative than the minus 41 per cent level six months earlier. A survey balance measures the difference between respondents reporting increases and decreases. Agreed sales slipped from minus 16 per cent to minus 18 per cent, while three-month sales expectations moved from minus 3 per cent to minus 6 per cent.[1]

Prices weaken across most English regions

The national house-price balance fell to minus 32 per cent from minus 28 per cent, ending four months of improvement. London was weaker than the national figure. Northern Ireland continued to report rising prices and Scotland modest increases. The three-month price-expectations balance was minus 24 per cent, while the twelve-month balance was zero.[1]

Tenant demand increases as landlord supply remains weak

Tenant demand reached a positive balance of 23 per cent, rising for a third month. New landlord instructions remained negative. Expectations of higher rents over three months had a balance of 37 per cent, a decline from August’s 44 per cent. In sales, new instructions reached positive 6 per cent, the first positive result since mid-2025, although appraisals stayed below year-earlier levels.[1]

References

  1. News sourceRICSUK housing survey records weaker buyer demand↩1↩2↩3↩4
  2. News sourceToday’s ConveyancerUK housing survey shows weaker buyer demand in September↩
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