Buyer demand in the UK housing market slipped in February, touching its weakest levels since late 2023, with expectations that this trend will continue as higher stamp duty costs come into effect next month.
A net balance of 14% of property professionals reported a fall in demand rather than a rise, according to the Royal Institution of Chartered Surveyors (RICS).
The RICS survey said that the upcoming rise in stamp duty, which will apply to some homebuyers starting 1 April, is likely to weaken market activity, particularly in England and Northern Ireland.
RICS chief economist Simon Rubinson said: “The UK housing market appears to be losing some momentum as the expiry of the temporary increase in stamp duty thresholds approaches.
“Some concerns are also being expressed by respondents about the re-emergence of inflationary pressures and the more uncertain geopolitical environment. That said, looking beyond the next few months, sales activity is seen as likely to resume an upward trend with prices also moving higher.”
From 1 April, the “nil rate” band for first-time buyers will come down from £425,000 to £300,000, while for other homebuyers it will fall from £250,000 to £125,000. It means half of homeowners will have to pay an extra £2,500 per purchase, while another third will pay up to this level.