UK Housing Market Slows with Widespread Price Falls, Buyer Demand Drops

The UK housing market experienced a continued slowdown in August 2025, with new buyer enquiries and agreed sales declining further, according to multiple RICS Residential Market Surveys. The net balance for new buyer enquiries dropped to -17%, and agreed sales fell to -24%, marking a weakened demand and a slowed sales pace across most regions, with East Anglia and the South West of England seeing the most significant price declines. House prices nationally came under increasing downward pressure, with the headline price balance falling to -19%, the lowest since early 2024, while Northern Ireland remained an exception with rising prices. In Wales, the housing market cooled notably as surveyors reported falling prices and reduced buyer enquiries, with cautious expectations for continued price declines in the short term but somewhat stronger outlooks over a 12-month horizon. Supply of new listings also flattened or declined, intensifying market sluggishness, and landlord instructions for lettings dropped sharply despite tenant demand remaining stable, with modest rent increases anticipated. Economic uncertainty, high inflation, and unclear interest rate trajectories are cited as key factors dampening housing market sentiment and activity across the UK.