The November slowdown in the UK housing market intensified as uncertainty around the Autumn Budget weighed on buyer sentiment according to the latest RICS UK Residential Market Survey.
Most activity indicators remained firmly in negative territory with many agents now pushing expectations of a meaningful recovery into spring 2026.
Respondents reported that extensive leaks in the weeks leading up to the Budget unsettled prospective movers although there was relief that the new High Value Council
Buyer demand, sales and instructions all weakened further in November. New buyer enquiries fell to their lowest level since late 2023, while supply remained constrained and a fall in market appraisals pointed to a thin pipeline of new listings heading into winter.
SHARP DECLINES
Price pressures remained uneven across the UK, with London experiencing the sharpest declines following the announcement of the new top-end council tax charge.
By contrast, Northern Ireland and Scotland continued to see upward pressure on prices.
The lettings market also showed signs of cooling with landlord instructions sliding and tenant demand posting its weakest reading since April 2020. RICS said part of the drop reflects seasonal patterns, but also a broader softening in demand.
SUBDUED FUTURE
RICS Chief Economist Simon Rubinsohn says: “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.
“Meanwhile in the lettings market, although tenant demand does appear to be softening the lack of stock is keeping rental expectations elevated and the additional tax levied on landlords in the Budget will likely exacerbate this trend.”
GAME CHANGER
Tom Bill, Head of UK Residential Research at Knight Frank, adds: “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.
“A downwards trajectory for interest rates will support demand but political uncertainty will become the key risk.
“The game of ‘guess the tax rise’ played in recent months could become a game of ‘guess the Chancellor’ if next spring’s local elections are as bad for Labour as the polls suggest.”
