House prices faced increased downward pressure in April, with a widening regional divide, according to the Royal Institution of Chartered Surveyors (RICS). A net balance of 34% of property professionals reported falling prices, up from 25% in March.
The report highlights a stark contrast between regions. Stronger price falls were seen in London, the South East, East Anglia and the South West. In contrast, northern England saw 'marginally positive' price growth, while Scotland and Northern Ireland continued to see increases.
Higher mortgage rates and the conflict in the Middle East dampened buyer demand, with a net balance of 34% of professionals reporting a fall in new buyer inquiries. Agreed sales also remained weak, with a net balance of 36% reporting declines.
Looking ahead, sales expectations were subdued for the next three months but less negative for the 12-month outlook. The rental market continued to show demand outstripping supply, as tenant demand rose while landlord instructions fell.
Tarrant Parsons, head of market research at RICS, said: 'April's results show a housing market still in the grip of macro headwinds stemming from the Middle East conflict. Recent warnings from the Bank of England that interest rate rises may be required to tackle renewed inflation underline the challenging environment facing buyers.'
