The UK housing market continued to lose momentum in April, with both buyer demand and completed sales falling as the stamp duty holiday came to an end.
According to the latest residential market survey from the Royal Institution of Chartered Surveyors (RICS), a net balance of -33% of respondents reported a decline in new buyer enquiries, as higher transaction costs prompted many would-be homeowners to pause their plans. It is the third consecutive month demand has dropped.
Sales volumes also dropped, with a net balance of -31% reporting a fall in agreed transactions — the weakest reading since mid-2023.
“Although geopolitical developments haven’t helped the mood music in the residential market over the past month, the main reason for the dip in the key RICS sales activity metrics lies in the expiry of the stamp duty holiday at the end of March,” said Simon Rubinsohn, chief economist at RICS.
Stamp duty discounts became less generous for some home buyers from 1 April. Stamp duty applies in England and Northern Ireland.
Short-term expectations remain subdued, with a net balance of -15% expecting further declines in sales over the next three months. However, Rubinsohn suggested the medium-term outlook may be improving.
