The UK housing market showed unexpected resilience in October, with estate agents reporting increased sales, rising buyer inquiries, and a brighter outlook following the Autumn Budget.
Despite pre-budget apprehension, the housing market outperformed expectations, according to the latest survey by the Royal Institution of Chartered Surveyors (Rics). Of the 269 estate agents polled, a majority reported more sales in October compared to September, driven in part by buyers seeking to complete transactions ahead of potential budget-related tax changes.
While some agents observed a slowdown in the weeks leading up to the October 30 budget, the overall sentiment was optimistic. “We have had a wave of exchanges and completions, probably prompted by a desire to exchange before the budget,” said Simon Milledge of Jackson-Stops in Blandford Forum, Dorset.
Similarly, John King from Andrew Scott Robertson in Merton, southwest London, attributed October’s surge in activity to a combination of media coverage on potential tax rises and easing mortgage rates.
Ian Perry of Perry Bishop in Cheltenham, Gloucestershire, noted: “[There was] a slight hiatus ahead of the budget but the market [is] now perking up again.”
Looking ahead, 34 per cent of estate agents anticipated selling more homes within three months, with even greater confidence about activity levels this time next year.
The survey also found a continued rise in buyer inquiries for the fourth consecutive month, alongside an increase in new listings, creating what the Rics described as a “relatively solid” near-term pipeline. Reflecting this recovery, 16 per cent of respondents believed house prices were rising, a significant shift from two months ago when prices were seen as static.
Tarrant Parsons, head of market analysis at the Rics, highlighted the momentum: “The recent improvement in buyer demand is translating into growth in the number of sales being agreed. Forward-looking sentiment points to this brighter trend continuing in the months ahead.”
However, he warned that a post-budget rise in bond yields, which influence mortgage rates, could pose challenges in the short term.
In the lettings market, tenant demand remained robust over the summer, but supply constraints intensified. A net 29 per cent of letting agents reported a decline in landlord instructions, marking the most negative reading since late 2021.
With rental homes in short supply, most agents expected rents—already at record highs—to continue climbing, further squeezing tenants in a highly competitive market.
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Housing market rebounds after budget as buyer demand surges