Britain’s housing market lost momentum in October as buyers grew cautious ahead of Finance Minister Rachel Reeves’ upcoming budget on November 26, a survey by the Royal Institution of Chartered Surveyors (RICS) revealed on Thursday.

RICS reported that new buyer enquiries dropped to a net balance of -24 in October, down from -21 in September, marking the weakest reading since April when the government reduced the stamp duty threshold. Agreed home sales also fell further into negative territory, moving to -24 from -17 the previous month.

“Ongoing uncertainty around potential budget measures is contributing to a cautious mood among buyers and sellers, while high inflation and rising unemployment remain concerns,” said Tarrant Parsons, RICS’ head of market research and analysis. He added that clearer guidance on housing taxation may help stabilize the market, but any measures adding pressure could deepen the slowdown.

House price growth has slowed compared with the latter half of 2024, as buyers worry about economic conditions and potential tax increases. The RICS house price balance fell to -19 in October from -17 in September.

Data from mortgage lenders Halifax and Nationwide showed modest monthly price increases in October, with Halifax reporting a 0.6% rise and Nationwide a 0.3% increase, bringing annual house price inflation to 1.9% and 2.4%, respectively. Survey respondents expect prices to fall in the next three months, though annual forecasts remain slightly positive.

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