Britain’s housing market remained firmly in the doldrums in September as buyer demand, sales and new listings all weakened ahead of next month’s Winter Budget.
The latest UK Residential Market Survey from the Royal Institution of Chartered Surveyors (RICS) shows that buyer enquiries and agreed sales have now fallen for three consecutive months, with no sign of a rebound before early 2026.
A net balance of -19% of surveyors reported a decline in new buyer interest in September, while agreed sales slipped to -16%, marking another month of contraction despite a modest improvement from August’s -24% reading.
New listings also fell for the second month running, with a -15% balance of agents reporting fewer homes coming to market.
PRICES EDGING LOWER
House prices continued to edge lower, with a national balance of -15%, indicating modest downward movement. The sharpest declines were recorded in the South East and East Anglia, while Scotland and Northern Ireland remained the only regions where prices are still rising.
Tarrant Parsons, RICS Head of Market Research and Analytics, says: “The housing market continues to struggle for momentum, with seemingly no clear catalyst on the horizon to spark a turnaround.
“Buyer demand remains subdued, while agreed sales are still on a downward trend. Ongoing uncertainty around potential measures in the upcoming Budget is also likely adding to the prevailing cautious sentiment.”
BUDGET FEARS
Survey respondents warned that fears of further property-related taxation in the November Budget were weighing heavily on both buyers and sellers, compounding affordability pressures already strained by high mortgage rates.
Forward-looking indicators suggest little change ahead. Both short-term and 12-month sales expectations registered at -9%, the first outright negative annual reading in more than a year. Although short-term price expectations remain weak (-21%), a modest +12% of respondents expect values to rise again by late 2026.
LANDLORD EXIT
The rental market remains the only area showing upward pressure. Tenant demand was broadly flat (-1%) last month, but landlord instructions plunged to -38% – the lowest level since May 2020 – as many investors continue to exit the sector amid rising costs and tighter regulation. Rents are forecast to rise by around 3% over the next year as supply shrinks further.
BUDGET HESITATION
Tom Bill, Head of UK Residential Research at Knight Frank, says: “Activity in the UK housing market has been building since April, a month when confidence was dented by higher rates of stamp duty and tariff-related turmoil on financial markets.
“Demand has been supported by stable mortgage rates and downwards pressure on asking prices due to high levels of supply.
“However, there is a creeping mood of hesitation as November’s Budget moves onto the radar and a game of ‘guess the tax rise’ takes place for the second successive year.”
CONFIDENCE COMPROMISE
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “New buyer enquiries, agreed sales, listings and prices are all continuing to soften – but not correct.
“The prospect of higher – not just for property – taxes in the Budget is compromising confidence other than for those who are particularly motivated to move.
“Looking forward, we see little likelihood of change at least until after the end of November. However, in similar circumstances previously, we have often found the weaker the uncertainty, the stronger the recovery.”
RENTERS’ RIGHTS BILL
And he adds: “The imminent arrival of the Renters’ Rights Bill and other regulations, which are likely to add to costs and difficulty of regaining possession, has given further impetus to landlords minded to sell.
“Conversely, the amount of choice for buyers – often of smaller flats and houses – as well as weaker demand has made it more of a struggle than many anticipated so some are returning to lettings.
“Demand remains steady so there’s a strong possibility that rents will resume a more rapid upward trajectory sooner rather than later.”
NOT A TEMPLATE FOR GROWTH
James Abbott, Director and Head of Residential at Savills, Stamford, says: Whilst viewings have picked up since the August Bank Holiday, with sales being agreed, market appraisals and seller enquiries genuinely wishing to market this Autumn are down.
The Autumn Statement, and so late, has delayed many families’ decision making – it really isn’t a template for growth.
TWO TIER MARKET
David Robinson, Principal Owner at David J Robinson Estate Agents & Auctioneers, covering Cornwall, West Devon and Torridge, says: “The market has split into two tiers, the local market is still functioning albeit subdued.
The upper end which is driven by out of area buyers is very flat as we await the Autumn Budget with trepidation and its likely target(s), namely the middle/upper end of market, confidence is very fragile!”
