Property Tips by Chartered Surveyors  from the Haynes House Manual series

Housing market blues

Estate agents are currently facing rising costs (e.g. Rightmove listing fees) just when the market is witnessing a slump in sales (and hence sales commissions).

Monthly property transaction statistics from HMRC showed a major fall of 41 per cent in March compared to the same month a year earlier (104,070 residential property deals struck in March 2026).

This sharp year-on-year drop partially reflects the rush of buyers completing purchases in March 2025 to beat the April 2025 change in stamp duty thresholds. But there are several other factors stiffling market activity. 

Rising mortgage rates—prompted by geopolitical uncertainty in the Middle East—have slowed market momentum, with 2-year fixed rates rising significantly in early April. First time buyers are especially vulnerable to rising mortgage rates, which in some cases has caused whole chains to collapse.

Normally, the property market enjoys a bounce in Spring. Which is why the March figures being only slightlyy ahead of February is surprising. London estate agents Foxtons said last week that commission from house sales was down a third so far this year. It reported a drop in interest from buyers even when sellers have cut prices.  Asking price cutting is up 44% in some regional surveys as sellers have had to adjust to lower buyer demand.

One problem is the  ‘Catch 22’  log jam that’s holding up transactions because homeowners wanting to sell can’t start moving without an offer on their property, and buyers won’t commit without cheaper mortgages.

There is an expectation that in the second half of 2026 soaring oil prices will lead to renewed inflation, which would very likely trigger further increases in mortgage rates, putting further pressure on buyers.

Simon Gerrard of Martyn Gerrard Estate Agents, said: “How the market goes in summer is entirely down to confidence. Right now, the war in Iran and the resulting fears about interest rates has wrecked nerves. If the war ends, things will quickly improve but until then transactions will remain on the floor.”

In London home ownership is 270% more expensive than it was in 2002, so the problem is primarily about affordability rather than a shortage of homes.  So in many cases houses are just too expensive for buyers’ sums to add up.

A survey of estate agents last month also showed that new buyer inquiries and sales fell sharply in March, while expectations for near-term sales have become significantly more pessimistic. But it’s not all bad news. To the surprise of estate agents and economists house price growth in the UK actually jumping in April, according to Nationwide. However, Rob Wood, the chief economist at Pantheon Macroeconomics, said: “Unfortunately, we doubt prices can keep up their recent pace. Potentially, some of the prices included in the Nationwide index were from sales agreed in the early stages of the Iran war.

See Rightsurvey.co.uk for a quick guide to valuation and survey prices

We would always recommend using RICS certified surveyors in every instance – don’t get caught out, get instant quotes for RICS surveyors here.

 Ian Rock’s Rightsurvey property tips are taken from the Haynes House Manual series.