UK House Sales Outlook Hits Three-Year Low

The Royal Institution of Chartered Surveyors reported in October that British property surveyors hold the most pessimistic short-term outlook for house sales in more than three years. The outlook for sales over the next 12 months fell to -17, while the house price balance dropped to -36.

This downturn follows a decision by the Bank of England to raise interest rates to 4% from 3.75%, the first such increase in three years. Tarrant Parsons, head of market research at RICS, noted that home buyer demand remains subdued as respondents brace for a weaker year of sales due to persistent macroeconomic challenges.

While the sales market weakened, the rental market trended in the opposite direction. Tenant demand strengthened and expectations for rent growth climbed to +41, marking the strongest level of growth since early 2024.