Finance
UK housing market slows after tax-raising budget, RICS survey shows
Published by Global Banking & Finance Review®
Posted on December 11, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 11, 2025
2 min readLast updated: January 20, 2026
The UK housing market slowed after the recent budget, with RICS reporting a drop in buyer enquiries and ongoing challenges in affordability and borrowing costs.
MANCHESTER, England, Dec 11 (Reuters) - Britain's housing market slowed after finance minister Rachel Reeves' budget last month, according to a survey of chartered surveyors that showed buyer enquiries falling at the fastest rate in over two years.
The Royal Institution of Chartered Surveyors' monthly gauge of new buyer enquiries fell in November to -32% from -24% in October, marking the weakest reading since September 2023.
Three-quarters of responses to the RICS Residential Market Survey came after Reeves' budget on November 26.
The report adds to signs of subdued property market activity around the time of the budget, which contained a new annual tax on homes worth more than 2 million pounds ($2.63 million).
RICS said there was a sense of relief among surveyors over the high price threshold, with the surcharge due come into force in April 2028.
Respondents also said media leaks about the content of the budget during November - which Reeves described as unacceptable on Wednesday - had dampened housing market activity.
"The housing market has been struggling for momentum for several months, and the recent budget announcements are unlikely to materially shift that picture," said RICS chief economist Simon Rubinsohn.
"The ending of budget-related uncertainty is welcome, but the fundamental challenges of affordability and elevated borrowing costs will in all probability keep activity subdued in the near term."
The survey's gauge of house prices rose to -16%, the highest reading since July, from an unrevised -19% in October.
(Reporting by Andy Bruce; editing by Suban Abdulla)
The housing market refers to the supply and demand for residential properties, including homes for sale and rent, and is influenced by various economic factors.
A budget is a financial plan that outlines expected income and expenses over a specific period, helping individuals or organizations manage their finances effectively.
Buyer enquiry refers to the interest expressed by potential buyers in purchasing a property, often measured through surveys conducted by real estate organizations.
Property investment involves purchasing real estate with the expectation of generating rental income or capital appreciation over time.
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