House sale enquiries drop to weakest level in two years after Budget jitters, report finds
Results of the survey found a gentle decline in house prices overall with falls being particularly negative in London
The amount enquiries being made by new home buyers dropped to its lowest level recorded in two years following uncertainty around the Budget.
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A net balance of 32% of property professionals reported new buyer queries falling rather than rising, which was the weakest reading since late 2023.
The report, by Royal Institution of Chartered Surveyors (Rics), also found that the number of new instructions to sell and sales being agreed was also falling overall, with professionals highlighting the impact of pre-Budget uncertainty.
Survey feedback continues to point to a gentle decline in house prices overall, with price falls being particularly negative in London.
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Over the year ahead, a net balance of 15 per cent of property professionals anticipate sales volumes will pick up and a net balance of 24 per cent believe house prices will increase.
In the lettings market, professionals expect rents to increase by around 2.5 per cent over the next year.
Rics chief economist Simon Rubinsohn said: "The housing market has been struggling for momentum for several months, and the recent Budget announcements are unlikely to materially shift that picture.
"The ending of Budget-related uncertainty is welcome, but the fundamental challenges of affordability and elevated borrowing costs will in all probability keep activity subdued in the near term.
"That said, the 12-month outlook has brightened somewhat, likely reflecting a growing sense that the Bank of England may have a little more scope to reduce interest rates than seemed plausible only a short while ago."
Tom Bill, head of UK residential research at Knight Frank, said: "The barrage of property tax speculation before the Budget unsurprisingly soured sentiment among buyers and sellers.
"Now there is clarity, we expect existing transactions to accelerate before Christmas, and activity should remain relatively strong in early 2026."
Aneisha Beveridge, head of research at property firm Hamptons added: "Looking ahead, we expect the new year to bring a pick-up in activity.
"Rate cuts, combined with strong income growth, should support both prices and transaction volumes.
"That said, prime markets may continue to lag behind the mainstream, as higher-value buyers remain more sensitive to economic and political uncertainty."