Britain’s housing market slowed last month as buyer demand weakened. Many potential buyers grew cautious over the possibility of new tax measures in finance minister Rachel Reeves’ upcoming budget on November 26, according to a survey released on Thursday.
The Royal Institution of Chartered Surveyors (RICS) reported that new buyer enquiries fell to a net balance of -24 in October, down from -21 in September.
This was the weakest reading since April, when the government lowered the price threshold for paying stamp duty.
A separate measure tracking agreed home sales also moved further into negative territory. It fell to -24 from -17 in September, showing a deeper slowdown.
Tarrant Parsons, RICS’ head of market research and analysis, said uncertainty around the budget was adding to the cautious mood among buyers and sellers. He noted that high inflation and rising unemployment were also weighing on the market.
Parsons added that clearer housing tax policies could help stabilise confidence. However, any new measures that put more pressure on activity could worsen the current slowdown.
House price growth in Britain has also cooled this year compared with the second half of 2024. Concerns about the wider economy and the risk of additional taxes have limited demand as Reeves prepares her budget.
RICS’ house price balance, which measures the share of surveyors reporting price rises versus falls, slipped to -19 in October from -17 in September.
Recent data from mortgage lender Halifax showed a 0.6% increase in house prices in October, pushing annual inflation up to 19%. Nationwide, another major lender, reported a 0.3% monthly rise and a 2.4% annual gain.
Despite the cooling trend, RICS respondents broadly expect house prices to fall over the next three months, but remain positive about price movements over the coming year.
