Economics

UK House Sales Decline as Soaring Inflation Cuts Into Demand

The report is the latest to suggest that higher interest rates and soaring inflation are taking a toll on the property market, which has boomed all the way through pandemic lockdowns and the recession. 

Photographer: Darren Staples/Bloomberg
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The UK housing market came under further pressure from the cost-of-living crisis in July as sales and buyer demand fell, and agents turned increasingly gloomy on the outlook, the Royal Institution of Chartered Surveyors said.

The closely-watched survey showed sales expectations for the next 12 months are at the lowest level since March 2020, and new buyer inquiries fell for a third month -- the longest run since the early days of the pandemic. Measures of current sales also fell.