LONDON, Nov 12 (Reuters) – British property surveyors were the most downbeat about the short-term outlook for house sales in more than three years in October, as rising interest rates for mortgages compressed demand, a survey showed on Thursday.
The Royal Institution of Chartered Surveyors said its outlook for house sales over the 12 months fell to -17 in October, with surveyors expecting the broadest drop in sales since July 2023.
“Home buyer demand remains subdued, and respondents are bracing for a weaker year ahead for sales given the persistent macroeconomic challenges being faced,” RICS head of market research Tarrant Parsons said.
• RICS’ headline house price balance dropped to -36 last month from September’s downwardly revised reading of -34, and a slightly bigger drop than the -34 forecast in a Reuters poll of economists
• Its gauge of new buyer enquiries held at -24 while agreed sales fell to -24 from -18, the weakest in three months
• In rentals, tenant demand strengthened and landlords reduced properties put on the market
• Expectations for growth in rents over the next three months climbed to +41, from +29, its strongest since early 2024
• The Bank of England raised interest rates to 4% from 3.75% last week, its first hike in three years
(Reporting by Suban Abdulla; editing by David Milliken)
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