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UK Housing Cools as RICS Reports Demand Slump Before Budget

Market participants cite uncertainty over potential property tax changes ahead of the 26 November Budget.

Overview

  • RICS said new buyer enquiries fell to a net balance of -24 in October, with agreed sales also weaker and the house price balance slipping to -19.
  • The lettings reading dropped to its weakest level since 2020, pointing to broader strain across sales and rental markets.
  • LonRes reported a 65% fall in October transactions for London homes above £5 million, underscoring sharper stress at the top end.
  • Mortgage-lender data showed short-term price resilience, with Halifax and Nationwide recording modest monthly gains that contrast with survey expectations of near-term falls.
  • Industry figures blamed policy uncertainty and broader economic pressures, urged stamp duty reform, and described buyers and sellers adopting a wait-and-see approach until the Budget.