UK house sales outlook is darkest since 2023, RICS says

Detailed summary

The Royal Institution of Chartered Surveyors said its outlook for house sales over the 12 months fell to -17 in October, with surveyors expecting the broadest drop in sales since…

LONDON, Nov 12 (Reuters) - British property surveyors were the most downbeat about the short-term outlook for house sales in more than three years in October, as rising interest rates for mortgages compressed demand, a survey showed on Thursday.

The Royal Institution of Chartered Surveyors said its outlook for house sales over the 12 months fell to -17 in October, with surveyors expecting the broadest drop in sales since July 2023.

"Home buyer demand remains subdued, and respondents are bracing for a weaker year ahead for sales given the persistent macroeconomic challenges being faced," RICS head of market research Tarrant Parsons said.

• RICS' headline house price balance dropped to -36 last month from September's downwardly revised reading of -34, and a slightly bigger drop than the -34 forecast in a Reuters poll of economists

• Its gauge of new buyer enquiries held at -24 while agreed sales fell to -24 from -18, the weakest in three months

• In rentals, tenant demand strengthened and landlords reduced properties put on the market

• Expectations for growth in rents over the next three months climbed to +41, from +29, its strongest since early 2024

• The Bank of England raised interest rates to 4% from 3.75% last week, its first hike in three years

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