Activity across the Welsh housing market was muted through September, according to the latest research from the Royal Institution of Chartered Surveyors (RICS). Its residential market survey also shows that the rise in mortgage rates appears to be weighing on the sales and pricing outlook.
Buyer enquiries fall to lowest level in nearly a year
A net balance of minus 49% of respondents in Wales reported a fall in new buyer enquiries. This is the lowest this balance has been in nearly a year, since November 2025.
On the supply side, a net balance of minus 4% of respondents in Wales reported that new instructions to sell had fallen, down from the net balance of 18% seen in August.
Sales and prices decline
With demand and supply both subdued, sales followed the same pattern. A net balance of minus 13% of respondents reported that newly agreed sales had fallen through September.
Looking at pricing, Welsh surveyors report that prices fell over the past three months. A net balance of minus 15% report that prices have declined, down from the 9% seen in the previous survey.
Cautious outlook for the final quarter
On the outlook, surveyors remain cautious. A net balance of minus 10% of respondents in Wales believe house prices will fall over the next three months, and a net balance of minus 10% expect that sales will fall through the final quarter of the year.
Anthony Filice of Cardiff-based estate agents Kelvin Francis said: “Buyers, though lower in numbers, seem confident in their investment, although they are making lower offers.”
David James of James Dean in Brecon added: “There are still plenty of sales happening, even though it feels a tougher market.”
UK-wide picture
On the UK picture, RICS head of market research and analysis, Tarrant Parsons, said: “A renewed rise in interest rate expectations has created a fresh headwind for the housing market, with buyers becoming a little more cautious and sales activity losing some momentum this month.
“Even so, the latest results do not point to any significant shift in direction. Rather, they suggest the market may need to contend with a somewhat longer period of subdued activity as households adjust to the prospect of borrowing costs remaining higher than previously anticipated.”
