Source: Sharecast
According to the latest residential market survey from the Royal Institution of Chartered Surveyors, the headline house price indicator fell to -34 from -25 in March, while new buyer enquiries, although marginally improved month-on-month, remained firmly in negative territory at -34.
A weighted balance is the difference between respondents reporting a rise in prices and those reporting a decline.
Agreed sales were also weaker, dipping to -36. New instructions recorded a net balance of -3, while appraisals fell to -16, down from zero a month previously, suggesting that the pipeline of future listings may weaken.
After a subdued end to 2025, the UK housing market had started the current year on the front foot. However, the outbreak of war in the Middle East at the end of February has sent global energy prices soaring, reigniting inflationary fears, weighing on interest rate expectations and dampening consumer confidence.
The Bank of England had initially been expected to continue cutting the cost of borrowing, as inflation tracked back towards 2%. However, it has now held Bank Rate twice this year and made it clear it stands ready to tackle any persistent rise in inflation.
Tarrant Parsons, head of market research and analysis at Rics, said: "April’s results show a housing market still in the grip of macro headwinds stemming from the Middle East conflict.
"Recent warnings from the Bank of England that interest rate rises may be required to tackle renewed inflation, driven by elevated oil prices and disrupted supply chains, underline the challenging environment facing buyers. Until there is a clearer path for inflation and borrowing costs, activity and sentiment look set to remain subdued."
Near-term price expectations remained depressed at -38, although that was up on March’s -45. Longer-term and respondents were more optimistic about house prices, with a 12-month outturn of 5. However, Rics said it was the flattest reading since late 2023.
The April survey sample covered 415 branches coming from 205 responses.