9th Oct 2025 01:26
(Alliance News) - UK home buyer demand has weakened for the third month in a row, with house sales also subdued, according to surveyors.
A net balance of 19% of property professionals saw new buyer inquiries falling rather than rising in September, marking the third month of decline, the Royal Institution of Chartered Surveyors said.
Sales activity softened, with a net balance of 16% of property professionals seeing a fall in agreed transactions, which was slightly less negative than a balance of 24% reporting a fall in sales in August.
Surveyors cited concerns over the upcoming November government budget, reporting growing caution among buyers and sellers, with affordability and sentiment acting as key constraints, Rics said.
Earlier this week, the government announced a shake-up to the home buying system, which it said could slash costs for buyers and cut the time it takes to move.
Changes could include requiring property sellers and estate agents to provide more information when a home is listed for sale, reducing the need for buyers to carry out searches and surveys.
Binding contracts could also be introduced at an earlier stage, reducing the risk of a chain collapsing. The consultation draws on jurisdictions such as the Scottish system, where there is more upfront information and earlier binding contracts. Perspectives from the UK are being asked for as part of the consultation.
Rics said that its latest survey points to a downward pressure on house prices, with a net balance of 15% of property professionals seeing a fall rather than a rise and the south east of England and East Anglia experiencing the sharpest declines.
By contrast, Scotland and Northern Ireland are continuing to see modest price gains, the report said.
House price expectations for the next few months are negative, but, overall, surveyors expect prices to be higher in 12 months' time, the report said.
In a sign of the supply of available homes cooling, a net balance of 15% of property professionals reported a fall rather than a rise in new instructions from house sellers, marking the second monthly drop.
Looking at the rental market, demand from tenants was broadly flat, with a small net balance of 1% of property professionals seeing a fall.
Landlord instructions fell more sharply, however, with a balance of 38% of property professionals seeing a decline.
Rents are expected to rise by around 3% over the next year, the report indicates.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said: "There was more misery for renters in September.
"There wasn't a huge bump in the number of people looking to rent, but as landlord numbers continued their relentless slide, it meant more competition for anything that came up.
"This isn't just pushing rents higher, it also makes life incredibly uncertain for those whose landlords are selling up, who are struggling to find somewhere else to live. Given that people are renting later in life, there's a decent chance they face the expense and upheaval of relocating the whole family every time this happens."
Rics head of market research and analytics at Tarrant Parsons, said: "The housing market continues to struggle for momentum, with seemingly no clear catalyst on the horizon to spark a turnaround over the near-term.
"Buyer demand remains subdued, while agreed sales are still on a downward trend, reflecting a broader hesitancy in the market. Ongoing uncertainty around potential measures in the upcoming Budget is also likely adding to the prevailing cautious sentiment."
Tom Bill, head of UK residential research at Knight Frank, said: "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."
A separate report released by Zoopla on Thursday indicated that the average price of a first-time buyer home is GBP229,000, marking a 2.4% increase over the past year.
The annual rise in the average first-time buyer property price is stronger than the average home price increase of 1.3%, Zoopla said.
In the north east of England, prices for first-time buyers have increased by 10% on average annually, according to the analysis.
The research, which covered the 12 months to July 2025, was based on first-time buyer inquiries to estate agents about specific homes for sale on Zoopla.
In London, first-time buyer home prices have fallen by 2.4% over the past year, but getting on the property ladder there costs GBP420,600 on average, according to the research.
Richard Donnell, executive director at Zoopla, said affordability challenges are "acting as a drag on house price growth across southern England".
He said: "The variation in affordability explains why first-time buyers across England are looking to buy three bed houses while in London, one and two bed flats remain the primary target for those buying their first home."
Here is the annual rise in the average price of a first-time buyer home and the average property price, according to Zoopla: North East, 10.2%, GBP134,800; Scotland, 6.4%, GBP146,600; Yorkshire and the Humber, 6.0%, GBP167,700; Wales, 4.0%, GBP172,800; North West, 5.1%, GBP179,300; West Midlands, 2.7%, GBP208,000; East Midlands, 1.7%, GBP210,000; South West, 1.9%, GBP245,000; Eastern England, 0.7%, GBP316,900; South East, 2.7%, GBP323,300; London, minus 2.4%, GBP420,600.
source: PA
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