Iran struggle hits UK housing market with gross sales and enquiries each down

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Your help makes all of the distinction. Learn extra The UK housing market is grappling with a major lack of momentum as persistent international and financial uncertainties proceed to dampen homebuyer sentiment.

The Royal Establishment of Chartered Surveyors (RICS) stated that whereas the 12 months initially started with some encouraging indicators, confidence rapidly weakened amid escalating issues over inflation, rising rates of interest and broader worldwide instability, significantly the Center East battle.

New purchaser enquiries noticed a notable decline in February, with a internet steadiness of 26 per cent of property professionals reporting a fall, a deterioration from the 15 per cent recorded in January.

Agreed gross sales additionally remained subdued, with a internet steadiness of 12 per cent of pros noting a lower.

Surveyors anticipate a continued dip in gross sales exercise within the rapid future. Nevertheless, the long-term outlook seems extra strong, as a internet steadiness of 17 per cent of pros count on gross sales to rebound over the subsequent 12 months.

Home costs have been broadly flat total in February, with a internet steadiness of 12 per cent of pros reporting falls, however there have been massive regional variations, RICS stated.

Downward worth stress is especially sturdy in London, the South East and East Anglia, whereas Northern Eire, Scotland and the North West of England are nonetheless reporting firmer worth traits, in keeping with the report.

Surveyors have change into extra cautious about home costs within the close to time period, however trying additional forward to the subsequent 12 months, a internet steadiness of 33 per cent of pros predict costs to edge larger.

<img src="https://static.independent.co.uk/2026/03/02/07/b31d60874ee5b565d502e86a98cedd08Y29udGVudHNlYXJjaGFwaSwxNzcyNTIyODA0-2.24335202.jpg" srcset="https://static.independent.co.uk/2026/03/02/07/b31d60874ee5b565d502e86a98cedd08Y29udGVudHNlYXJjaGFwaSwxNzcyNTIyODA0-2.24335202.jpg?quality=75&width=320&auto=webp 320w, https://static.independent.co.uk/2026/03/02/07/b31d60874ee5b565d502e86a98cedd08Y29udGVudHNlYXJjaGFwaSwxNzcyNTIyODA0-2.24335202.jpg?quality=75&width=640&auto=webp 640w" loading="lazy" alt="Some average mortgage rates on the market have also flown past the 5 per cent mark as lenders have scrambled to make changes" class="sc-1mc30lb-0 ggpMaE"/> Some common mortgage charges in the marketplace have additionally flown previous the 5 per cent mark as lenders have scrambled to make adjustments (Anthony Devlin/PA) However in London, expectations for home costs within the subsequent 12 months have “cooled sharply”, the report discovered.

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On the provision aspect, new directions remained broadly steady in February, indicating little rapid shift within the pipeline of recent inventory.

Within the lettings market, tenant demand was broadly steady over the three months to February, however landlord directions have been “firmly unfavorable”, pointing to a scarcity of rental properties. Professionals predict rents to rise total within the subsequent three months, the report discovered.

Mortgage lenders have been withdrawing offers and rising their charges as swap charges have elevated, with issues about rising costs mounting amid the battle within the Center East.

Monetary data web site Moneyfactscompare.co.uk stated on Wednesday that latest days have been a number of the most turbulent within the UK mortgage market for the reason that aftermath of Liz Truss’s September 2022 mini-Price range.

Some common mortgage charges in the marketplace have additionally flown previous the 5 per cent mark as lenders have scrambled to make adjustments.

RICS head of market analysis and analytics, Tarrant Parsons, stated: “February’s survey highlights renewed volatility available in the market.

“Whereas exercise indicators firstly of the 12 months steered a tentative enchancment, the deterioration within the geopolitical backdrop has clearly weighed on confidence.

“The latest rise in oil and vitality costs has additionally elevated the probability that mortgage charges will stay larger for longer.

“In consequence, near-term expectations have softened. Though the 12-month outlook stays constructive total, sustaining that trajectory will rely upon the latest spike in inflationary pressures easing within the months forward.”