UK Housing Market Activity Slows Amid Rising Interest Rates
A RICS survey shows UK housing activity fell in March as the Iran war pushed mortgage rates higher. While a recent ceasefire eased pressure, demand remains weak.
The housing market in the United Kingdom cooled significantly last month as economic uncertainty linked to the conflict in Iran unsettled potential buyers facing increased mortgage costs. A survey released by the Royal Institution of Chartered Surveyors (RICS) indicates that buyer demand, sales expectations, and house prices all saw a notable decline in March, with the price balance dropping to -23 from a revised -14 in February.
This downturn represents the most widespread fall in property prices since the start of 2024, echoing recent data from mortgage lenders that showed a sharp reduction in house prices. Expectations for the coming three months have also soured, with the RICS price expectation balance falling to -43, its lowest point since August 2023.