Housing sales have fallen to their weakest levels since July 2023 as increases in mortgage interest rates “weigh on buyer demand”, according to the latest sentiment survey from the Royal Institution of Chartered Surveyors (RICS).
Buyer demand remains “subdued” and agreed sales continue to fall along with house prices, October’s survey found. Respondents said they expected both sales activity and prices to “soften” over the next year.
The new buyer enquiries indicator remained at a net balance of -24%, unchanged from September, with virtually all parts of the UK reporting either falling or stagnant demand.
Meanwhile, the agreed sales sentiment slipped to -24% from -18%, its weakest reading in three months, the survey reported.
Looking ahead, twelve-month sales expectations fell to a net balance of -17%, the “most pessimistic assessment since July 2023”. Expectations for the next three months were also negative, at -11%.
House prices continued to drop according to RICS, the second consecutive monthly deterioration.
Respondents of the survey also revised down their expectations for the year ahead, with twelve-month price expectations falling.
RICS added the flow of homes coming onto the sales market has weakened with the October survey noting new instructions had slipped to a net balance of -8%, from +6% previously. The market appraisals indicator fell to -34%, its lowest since November 2025.
Together, these figures indicate the pipeline of new listings could slow further in the coming months, RICS suggested.
RICS head of market research and analysis, Tarrant Parsons, said: “Home buyer demand remains subdued, and respondents are bracing for a weaker year ahead for sales given the persistent macroeconomic challenges being faced.
“In accordance with this, the Bank of England’s rate rise was accompanied by a clear warning that policy may need to tighten further if higher energy costs feed through into wider prices. With inflation now projected to approach 5% next year, mortgage rates are likely to remain elevated for longer, thereby continuing to weigh on the market.”
