The UK housing market remained subdued in April as higher mortgage costs and broader economic uncertainty continued to weigh on buyer activity, according to the latest Residential Market Survey from RICS.
Buyer demand stayed firmly in negative territory during the month, although the pace of decline eased slightly. New buyer enquiries recorded a net balance of -34%, compared with -40% in March, while agreed sales remained weak at -36%.
Surveyors also reported a cautious outlook for the months ahead. Short-term sales expectations remained negative at -32%, while the twelve-month outlook slipped slightly below neutral, suggesting many agents expect market conditions to remain flat for much of the year.
Supply levels showed little movement overall, but there are signs that future stock levels could tighten further. New instructions were broadly stable, although the measure tracking new appraisals fell back into negative territory, indicating fewer homeowners may be preparing to come to market.
House prices also came under greater pressure during April. The headline RICS house price balance fell to -34%, down from -25% the previous month, with surveyors reporting the sharpest weakness in London, the South East, East Anglia and the South West.
In contrast, parts of the North West, the North of England, Scotland and Northern Ireland continued to record more resilient pricing trends.
Despite the weaker near-term picture, long-term expectations remain relatively stable. While short-term price expectations stayed negative, twelve-month expectations remained marginally positive, although at their weakest level since late 2023.
The lettings market continued to face an supply-demand imbalance. Tenant demand increased during April, while landlord instructions remained in decline, reinforcing ongoing pressure on rental stock levels. A net balance of respondents expects rents to continue rising over the coming months.
RICS head of market research and analysis, Tarrant Parsons, said: “April’s results show a housing market still in the grip of macro headwinds stemming from the Middle East conflict.
“Recent warnings from the Bank of England that interest rate rises may be required to tackle renewed inflation, driven by elevated oil prices and disrupted supply chains, underline the challenging environment facing buyers.
“Until there is a clearer path for inflation and borrowing costs, activity and sentiment look set to remain subdued, particularly across southern England and London where affordability pressures are most acute.”
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