LONDON: British property agents are more downbeat about home sales than at any point in over three years, according to a survey showing that soaring mortgage costs are sapping demand.
The Royal Institution of Chartered Surveyors (RICS) said its gauge of expected sales over the next 12 months declined to minus 17 in October, the lowest reading since July 2023.
The outlook for prices also deteriorated, with agents suggesting that home values could drop 1% in the year ahead.
The energy shock triggered by the Iran war tightened its grip on the UK housing market by eating into disposable incomes and driving up borrowing costs.
Key mortgage rates are now around 6%, up from 4.83% before the conflict began, with economists and investors expecting the Bank of England to keep raising interest rates to tame inflation.
“Home buyer demand remains subdued, and respondents are bracing for a weaker year ahead for sales,” said Tarrant Parsons, head of market research and analysis at RICS. — Bloomberg
