UK property market assesses losses due to the war in Iran
The UK house price index, developed by The Royal Institution of Chartered Surveyors (RICS), fell by nine percentage points to a level of -34, the lowest since November 2023.
This means that the number of estate agents reporting falling prices clearly exceeded those noting increases.
Moreover, the RICS index suggests that fewer homeowners are choosing to list their properties for sale, which could lead to a .
Tarrant Parsons, director of research and market analysis at RICS, stated that the property market “continues to struggle with adverse macroeconomic factors .”
The expert said that property prices are likely to fall in the near future in the face of a “tough” global geopolitical situation.
Nevertheless, the team remains considerably cautious in its forecasts, especially given the unfavorable data.
“Ongoing uncertainty in the Middle East and recent mortgage rate hikes ,” said Roshan Sivapalan, an RICS member from Blakes Surveyors.
“Nonetheless, demand for properties at realistic prices remains, and the market still operates where prices meet buyer expectations,” he added.
Read also: Market fracture. “2026 looks like a good year to buy an apartment.”
See also: Brutal real estate market data. Apartment sales suddenly fell by almost 20%
UK interest rates. The market awaits Bank of England action
The Bank of England, at its latest meeting, decided to keep rates unchanged at 3,75%, but officials signaled readiness to take action to curb inflationary growth.
RICS data shows that potential buyers are holding back from purchasing property due to interest rates remaining above 5%, high fuel prices, and slowing wage growth.
Tarrant Parsons noted that “the Bank of England’s recent warnings that rate hikes may be necessary to tame a resurgence of inflation driven by high oil prices and supply chain disruptions , in which buyers find themselves.”
“Until a clearer inflation and credit cost outlook emerges, market activity and sentiment are likely to remain muted, especially in southern England and London where housing availability pressure is most acute,” he added.
Neil Foster, an RICS member from Hadrian Property Partners, forecasts that sales activity is gaining momentum that could accelerate further this month.
More on UK property prices was covered in the article: The property market is cooling. Apartments suddenly cooled! Experts warn of a trend shift
Source: Trading Economics.
Read also: Market stagnation. Those looking for apartments “should know this” - experts say
See also: Properties no longer falling. In the month, 40,000 sales contracts were cancelled, apartments linger on the market for 60 days
Source: The Royal Institution of Chartered Surveyors.
