Buyer demand, agreed sales and new instructions all slid deeper into negative territory, the Royal Institution of Chartered Surveyors said in its latest UK Residential Market Survey

The UK housing market cooled further in October as uncertainty ahead of the autumn budget dampened buyer sentiment and slowed sales activity, according to a survey of surveyors.

Buyer demand, agreed sales and new instructions all slid deeper into negative territory, the Royal Institution of Chartered Surveyors (RICS) said in its latest UK Residential Market Survey.

Property professionals attributed the slowdown to growing concern over potential tax-raising measures expected to feature in the autumn budget.

A net balance of 24% of respondents reported a drop in new buyer enquiries, the weakest reading since April. An identical 24% recorded a decline in agreed sales, while a net balance of 20% said new instructions to sell had dropped rather than risen, marking the lowest level since 2021.

House price pressures also continued to ease, with a net balance of 19% of surveyors reporting declines. RICS said downward pressure was particularly pronounced in London, the South East and East Anglia.

Prices are expected to drop marginally over the next three months, although respondents anticipate a modest recovery over the coming year once fiscal policy becomes clearer.

In the lettings market, landlord instructions dropped sharply, with a balance of 33% of professionals reporting declines, the weakest figures since 2020. Tenant demand flattened, with a balance of 4% recording a decline.

Expectations for rent increases have cooled compared to the strong growth of recent years, as surveyors highlight concerns over potential tax rises that are undermining landlord confidence.

Tarrant Parsons, RICS head of market research and analysis, said: The housing market continued to show weakness in October, with activity levels drifting lower amid a lack of buyer confidence.

Ongoing uncertainty surrounding potential measures in the upcoming budget are thought to be compounding the cautious mood among both buyers and sellers, while above target inflation and rising unemployment are also a negative for the market, he said.