The UK housing market faced mounting pressure in April, with a significant regional divide emerging as house prices continued to decline, according to the latest survey from the Royal Institution of Chartered Surveyors (RICS).
Price Decline and Regional Disparities
A net balance of 34% of property professionals reported falling house prices in April, worsening from 25% in March. The report highlights a stark geographical split: southern regions including London, the South East, East Anglia, and the South West experienced stronger downward pressure, while northern England, Scotland, and Northern Ireland saw prices remaining marginally positive or still increasing.
Factors Weighing on Demand
Higher mortgage rates continued to suppress buyer demand, with a net balance of 34% of professionals noting a decline in new buyer inquiries. Agreed sales also remained weak, with a net balance of 36% reporting falls. The Middle East conflict further dampened confidence, according to RICS.
Expectations for sales in the near term remain subdued, though the outlook for 12 months ahead is less negative. There are also signs that the pipeline of new listings may weaken.
Rental Market Dynamics
In the rental sector, tenant demand continued to outstrip supply, with landlord instructions falling, sustaining upward pressure on rents.
Expert Commentary
Tarrant Parsons, head of market research and analysis at RICS, commented: "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, driven by elevated oil prices and disrupted supply chains, underline the challenging environment facing buyers. Until there is a clearer path for inflation and borrowing costs, activity and sentiment look set to remain subdued, particularly across southern England and London where affordability pressures are most acute."
