International

UK House Price Balance Falls to -32% as Rate Fears Return

  • by- Grihik
  • Oct 9, 2026
RICS says its UK house price balance fell to -32% in September as buyer enquiries weakened and rate expectations rose.
UK House Price Balance Falls to -32% as Rate Fears Return

The UK housing market lost momentum in September as higher interest-rate expectations weighed on buyers, according to the latest RICS UK Residential Market Survey, published on October 8.

Key readings (net balances)

  • House prices: -32%, down from -28% in August, ending four months of gradual improvement

  • New buyer enquiries: -22%, from -18% in August, the first month since March that the reading weakened

  • Sales expectations (next three months): -6%, from -3%

  • Price expectations: -24% for the next three months, and 0% over 12 months, which points to a flat trend further out

  • New sales instructions: +6%, the first positive reading since mid-2025

What a net balance means

It is the share of surveyors reporting a rise minus the share reporting a fall. A reading of -32% means many more respondents saw prices fall than rise. The survey covered 193 responses from 422 branches.

 

Regional picture

Most parts of England saw weaker price balances, with London notably worse than the national figure. Scotland showed modest price growth and Northern Ireland continued to see increases. The survey also pointed to stronger tenant demand in the rental market.

What RICS says

RICS head of market research Tarrant Parsons said a renewed rise in rate expectations has created a fresh headwind, with buyers more cautious and sales activity losing some momentum. RICS also said the overall picture has not shifted dramatically yet.

How this fits with other data

Lloyds' House Price Index, published on October 7, showed UK prices flat year on year in September at an average of £298,441. Surveyor sentiment is a leading indicator, so the RICS reading suggests more weakness may follow.