A drone view shows construction work taking place on new homes in Whitstable, Britain, September 11, 2024. REUTERS
LONDON, March 12 (Reuters) – Britain’s housing market has lost steam as demand faded from buyers concerned about the implications of the Middle East conflict and possible increases in mortgage rates on the back of energy price rises, a survey showed on Thursday.
The Royal Institution of Chartered Surveyors’ measure of new buyer enquiries fell sharply to a net balance of -26 in February, down from -15 in January. It was the lowest reading since December.
The survey of chartered surveyors covered February 23 to March 9, straddling the start of the U.S.-Israel war on Iran on February 28.
“The deterioration in the geopolitical backdrop has clearly weighed on confidence. The recent rise in oil and energy prices has also increased the likelihood that mortgage rates will remain higher for longer,” Tarrant Parsons, RICS’ head of market research & analytics, said.
The RICS report also showed:
- Near-term sales expectations slipped to a net balance of -2, the weakest since November.
- February’s gauge of house prices fell to -12 from -10 in January. A Reuters poll of economists had pointed to a reading of -9.
- Near-term house price expectations dropped to a net balance of -18 from -6.
- Tenant demand held stable in three months to February.
- New landlord instructions stayed deeply negative
Reporting by Suban Abdulla, editing by Andy Bruce
