The UK housing market stalled last month, with most regions seeing a drop in sales as demand from new buyers continues to decline, according to surveyors.
The Royal Institution of Chartered Surveyors said that the flow of properties coming to market has slowed, while price trends across the UK remained flat.
In October, interest from buyers continued to decline with 20% more surveyors seeing a fall in new buyer enquiries over the month.
Agreed sales have also fallen again, with 20% more respondents reporting a fall in transactions over the month.
In London, 63% more respondents reported a fall in prices over the month – the weakest since 2009.
RICS said that surveyors also reported a fall in prices in the South East, East Anglia and the North East.
By contrast, the North West, Wales, Scotland and Northern Ireland all reported house price gains.
Simon Rubinsohn, RICS chief economist, said: “The combination of the increased cost of moving, a lack of fresh stock coming to the market, uncertainly over the political climate and now an interest rate hike appears to be taking its toll on activity in the housing market.
“Prices do now seem under pressure at the more expensive end of the market with a further rise in the number of properties transacting at below the asking price.”
Brian Murphy, head of lending for Mortgage Advice Bureau, said: “What one can draw from the report though, is that if consumers are seeking to sell within the next few months, then pricing realistically is going to be key, as clearly there are still buyers out there who are motivated and want to move, but the dynamic is shifting slightly in some areas.”
Other price indexes have painted a more positive picture of the housing market.
According to the latest Halifax House Price Index, annual house prices went up 4.5% in the three months to October – up from 4% in September.
Halifax said that low mortgage rates and shortage of properties on the market, combined with high employment, would continue to support prices.
Nationwide reported that annual house prices rose 2.5% in October, although the squeeze on incomes is weighing on confidence.
