The UK housing market experienced a slowdown in September as expectations of rising interest rates dampened buyer demand, according to a survey of property professionals. The Royal Institution of Chartered Surveyors (Rics) reported a net balance of 22% of respondents observing a decline in new buyer enquiries, marking the first monthly downturn since March and a larger decrease than the 18% recorded in August.

While the drop in buyer interest reflects growing caution, it remains less severe than six months ago, when 41% of professionals noted falling enquiries. Alongside this, agreed sales also weakened, with 18% reporting a decline in September compared to 16% in the previous month. Looking ahead, 6% of respondents anticipate further reductions in sales over the next three months.

The supply side showed some signs of improvement, with a net balance of 6% of professionals witnessing an increase in new property listings—the first positive reading of this kind since mid-2025. Nonetheless, overall market appraisal activity remains below levels seen a year ago.

Price-wise, downward pressure persisted through the month. A net balance of 32% of property surveyors recorded falling house prices, up from 28% in August. Most regions of England reflected this trend, with London experiencing a particularly pronounced weakening. In contrast, market conditions in Northern Ireland and Scotland diverged from the broader UK pattern: house prices continued to rise in Northern Ireland, while Scotland saw modest growth.

The data underscore an unsettled market environment influenced by monetary policy expectations, with demand softening and prices under pressure in key areas, even as supply conditions show tentative improvement.