Buyer enquiries for UK homes fell in March to their lowest level since August 2023, according to a survey from the Royal Institution of Chartered Surveyors. Estate agents and surveyors reported deterioration across most of Britain over the past two months.
Agreed sales also reached their lowest point since summer 2023. Unsold housing stock on agents' books rose to an average of 47 properties, up from approximately 45 at the start of the year.
The RICS survey highlighted East Anglia and London as the regions where buyer enquiries fell most sharply. Rising mortgage rates and economic uncertainty, compounded by the conflict in Iran, have led potential movers to delay purchasing decisions.
Dan Stocks, a RICS surveyor in Guildford, Surrey, said he observed a "considerable downturn in enquiries since March," attributing the shift primarily to "the war in Iran and the hike in oil prices having a knock-on effect."
Cheryl La, a RICS member operating in Wolverhampton and Birmingham, said higher mortgage rates have hit the first-time buyer market directly. "Only serious buyers with large deposits are in a position to move whereas the first-time buyers are struggling to raise the additional shortfalls," La said.
Stephen Gadsby, a RICS member from Gadsby Nichols in Derby, described the market as "very quiet" for the time of year, reporting "reduced viewings and sales" and adding that "confidence seems very fragile."
Near-term sales expectations turned more pessimistic, with the majority of RICS members now expecting house prices to fall over the next three months. For the 12-month outlook, expectations point to prices remaining flat, though sentiment has deteriorated. Members in London, East Anglia, the South East and South West of England were the most negative on house price prospects.
Northern Ireland and Scotland continue to report rising prices, creating a clear regional divergence. London's market has already moved into depreciation territory, with capital house prices falling 2 percent — from £564,530 to £552,655 — in the year to April 2026, according to HM Land Registry data.
Higher mortgage rates, a direct consequence of central bank tightening, are amplifying duration risk for holders of mortgage-backed securities. As rate expectations shift, these instruments grow more sensitive to yield changes. Deteriorating property valuations are widening spreads for lower-quality real estate credit while compressing them for prime assets where liquidity is scarce. A flatter or inverted yield curve reinforces the headwinds facing long-term illiquid assets — property chief among them — under a restrictive monetary policy regime.
