Specialists difficulty mortgage value warning as purchaser demand drops

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Your help makes all of the distinction. Learn extra Rising mortgage prices are considerably impacting purchaser demand within the UK property market, hitting longer-term home worth expectations, in accordance with surveyors.

The Royal Establishment of Chartered Surveyors (RICS) reported the market slowed down in March, with rising borrowing prices and geopolitical uncertainty weighing on confidence.

A internet 39 per cent of pros reported a drop in new purchaser inquiries, up from 29 per cent in February. This marks the weakest studying since August 2023, as earlier market optimism light.

Agreed gross sales additionally slowed, with 34 per cent reporting a drop, up from 13 per cent the earlier month. RICS stated the report factors to a market more and more pressured by inflationary issues and better mortgage prices.

Trying to the approaching months, the survey reveals that round 33 per cent of pros anticipate gross sales to weaken additional over the subsequent few months. Over the subsequent 12 months, only one per cent anticipate gross sales to weaken, indicating a broadly flat market.

A stability of 23 per cent of pros noticed home costs falling in March. Value expectations for the subsequent three months additionally weakened, with 43 per cent anticipating falls. Wanting a 12 months forward, solely 2 per cent anticipate worth will increase, pointing to little general development.

<img src="https://static.independent.co.uk/2026/03/25/11/36/GettyImages-2164119750-(2).jpeg" srcset="https://static.independent.co.uk/2026/03/25/11/36/GettyImages-2164119750-(2).jpeg?quality=75&width=320&trim=0%2C0%2C0%2C0&auto=webp 320w, https://static.independent.co.uk/2026/03/25/11/36/GettyImages-2164119750-(2).jpeg?quality=75&width=640&trim=0%2C0%2C0%2C0&auto=webp 640w" loading="lazy" alt="Rising mortgage costs are impacting buyer demand according to surveyors" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> Rising mortgage prices are impacting purchaser demand in accordance with surveyors (AFP/Getty) Wanting throughout the UK, London, East Anglia, the South East and the South West all posted weaker worth readings than the nationwide common, whereas Scotland and Northern Eire continued to report rising costs.

On the availability facet, new directions to promote remained subdued, and the quantity of unsold inventory on property brokers’ books rose to a median of 47 properties, up from round 45 at the beginning of the 12 months.

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Within the lettings market, a mismatch between demand and provide continued, with demand for properties from tenants rising whereas landlord directions continued to lower, RICS stated.

Tarrant Parsons, RICS head of market analysis and evaluation, stated: “The temper throughout the UK housing market has shifted markedly over the previous couple of months.

“What had been a cautiously bettering image for exercise has been knocked off beam by the broader macro fallout from the Center East battle, because the renewed deterioration within the mortgage price outlook has proved significantly difficult.

“Certainly, with common mounted charges climbing again above 5 per cent in accordance with some sources, it's unsurprising that purchaser demand has softened.

“The trail forward hinges on whether or not or not current surges in oil and power prices start to reverse in what stays a extremely unsure geopolitical setting.”

<img src="https://static.independent.co.uk/2025/02/20/8/12/first-time-buyer-stock-housing-house-young-couple.jpeg" srcset="https://static.independent.co.uk/2025/02/20/8/12/first-time-buyer-stock-housing-house-young-couple.jpeg?quality=75&width=320&crop=3%3A2%2Csmart&trim=0%2C0%2C0%2C0&auto=webp 320w, https://static.independent.co.uk/2025/02/20/8/12/first-time-buyer-stock-housing-house-young-couple.jpeg?quality=75&width=640&crop=3%3A2%2Csmart&trim=0%2C0%2C0%2C0&auto=webp 640w" loading="lazy" alt="A net balance of 39 per cent of professionals saw new buyer inquiries falling in March" class="sc-1mc30lb-0 ggpMaE inline-gallery-btn"/> A internet stability of 39 per cent of pros noticed new purchaser inquiries falling in March (Getty Photos) On Wednesday, monetary info web site Moneyfacts stated mortgage charges are prone to stay larger for “a while but” regardless of some indicators of the upward stress easing.

World inventory markets have been recovering after the US and Iran agreed on a two-week ceasefire, and Moneyfacts stated that calming markets ought to have a stabilising impression on the mortgage market.

Adam French, head of client finance at Moneyfacts, stated: “The longer the ceasefire holds and markets calm, the extra the mortgage market will stabilise, and charges may even start to edge decrease.

“However for now, it’s extra prone to sluggish or pause will increase somewhat than set off any sharp falls.”

Jinesh Vohra, chief govt of mortgage app Sprive, stated: “Methods like common overpayments or lowering your stability earlier can have an outsized impression – probably saving householders 1000's over the time period of their mortgage.