UK house market loses momentum despite price rises
The UK housing market slowed in February, industry research suggested on Thursday, as mounting uncertainty started to weigh on demand.
According to the latest residential property survey from the Royal Institution of Chartered Surveyors, house prices rose in February.
The house price balance was 11, indicating ongoing growth. But the rate of growth was notably less than the balances of 25 and 21 seen in December and February.
In addition, buyer demand weakened, with the new buyer enquiries balance coming in at -14, the weakest reading since November 2023. It was also a notable decline on January’s balance of -1.
Agreed sales, meanwhile, fell into negative territory at -13, from 2 a month earlier, the softest return since last May.
Respondents said the market was reacting to upcoming changes to stamp duty, which will come into effect on 1 April, as well as mounting geopolitical and international economic uncertainties.
The market was forecast to continue softening in the short term, although most respondents still expect house prices to rise over the next 12 months, with a net balance of 47.
Simon Rubinson, Rics chief economist, said: "The UK housing market appears to be losing some momentum as the expiry of the temporary increase in stamp duty thresholds approaches.
"Some concerns are also being expressed by respondents about the re-emergence of inflationary pressures and the more uncertain geopolitical environment.
"A key support for the market continues to be the increased flow of existing stock becoming available, giving buyers a greater choice of options, However, leading indicators around new build remain subdued for now."