UK Estate Agents Report Weaker House Price Expectations in April Survey

More UK estate agents reported falling house prices in April as the war in Iran and elevated borrowing costs hit buyer confidence, according to a closely watched survey. @business reported that the combination of overseas conflict and high domestic borrowing costs weighed on prospective buyers during the month.

Estate agents responding to the survey registered the weakest readings for price expectations since the immediate aftermath of the mini-budget turmoil in late 2022. The data pointed to a clear deterioration in sentiment even as spring traditionally brings a seasonal uptick in housing market activity.

The war in Iran appears to have introduced fresh uncertainty for buyers already grappling with mortgage rates that remain elevated relative to the pandemic-era lows.

Elevated borrowing costs hit buyer confidence at a time when many households face renewed pressure on disposable incomes. No single factor dominated the downturn. Instead the survey painted a picture of multiple headwinds arriving simultaneously, leaving estate agents more pessimistic about near-term price direction than at any point in the past three years.

The findings arrive as policymakers monitor the housing market for signs of broader economic softening. With the survey covering house prices in the UK, the latest readings will feed into forecasts for consumer spending and residential investment in coming quarters.

@business reported the data without attributing specific figures to individual regions, suggesting the softening was broadly based rather than confined to London or other high-value markets.