UK house sales outlook is darkest since 2023, RICS says

RICS Reports UK House Sales Outlook at Lowest Point Since 2023

UK Housing Market Outlook and Survey Findings

LONDON, Nov 12 (Reuters) - British property surveyors were the most downbeat about the short-term outlook for house sales in more than three years in October, as rising interest rates for mortgages compressed demand, a survey showed on Thursday.

RICS Survey Results and Market Sentiment

The Royal Institution of Chartered Surveyors said its outlook for house sales over the 12 months fell to -17 in October, with surveyors expecting the broadest drop in sales since July 2023.

Expert Commentary

"Home buyer demand remains subdued, and respondents are bracing for a weaker year ahead for sales given the persistent macroeconomic challenges being faced," RICS head of market research Tarrant Parsons said.

Key Survey Metrics

• House Price Balance: RICS' headline house price balance dropped to -36 last month from September's downwardly revised reading of -34, and a slightly bigger drop than the -34 forecast in a Reuters poll of economists
• Buyer Enquiries and Sales: Its gauge of new buyer enquiries held at -24 while agreed sales fell to -24 from -18, the weakest in three months

Rental Market Trends

• In rentals, tenant demand strengthened and landlords reduced properties put on the market
• Expectations for growth in rents over the next three months climbed to +41, from +29, its strongest since early 2024

Interest Rate Impact

The Bank of England raised interest rates to 4% from 3.75% last week, its first hike in three years

(Reporting by Suban Abdulla; editing by David Milliken)