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The UK housing market continued to lose momentum in April, with both buyer demand and completed sales falling as the stamp duty holiday came to an end.
According to the latest residential market survey from the Royal Institution of Chartered Surveyors (RICS), a net balance of -33% of respondents reported a decline in new buyer enquiries, as higher transaction costs prompted many would-be homeowners to pause their plans. It is the third consecutive month demand has dropped.
Sales volumes also dropped, with a net balance of -31% reporting a fall in agreed transactions — the weakest reading since mid-2023.
“Although geopolitical developments haven't helped the mood music in the residential market over the past month, the main reason for the dip in the key RICS sales activity metrics lies in the expiry of the stamp duty holiday at the end of March,” said Simon Rubinsohn, chief economist at RICS.
Stamp duty discounts became less generous for some home buyers from 1 April. Stamp duty applies in England and Northern Ireland.
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Short-term expectations remain subdued, with a net balance of -15% expecting further declines in sales over the next three months. However, Rubinsohn suggested the medium-term outlook may be improving.
“Near term expectations indicators suggest the subdued trend will persist for the next few months at least, but looking beyond this, the results are more encouraging, reflecting in part the prospect of deeper interest rate cuts than previously anticipated,” he said.
House prices held steady in April, slipping slightly into negative territory with a net balance of -3%, down from +2% the previous month. While caution persists in the near term — a net balance of -21% of respondents anticipate downward pressure over the next quarter — the longer-term outlook is more resilient. A net balance of +39% of survey participants expect prices to return to growth over the coming year.
On the supply side, new instructions to sell remained essentially flat, with a net balance of +6% — unchanged from March. The flow of property appraisals, a key indicator of upcoming listings, rose only marginally, suggesting no significant change in supply conditions in the near term.
Tom Bill, head of UK residential research at estate agent Knight Frank, said: “Despite a predictable lull in April following the stamp duty cliff edge, demand in the UK housing market is relatively robust.
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“The tariff turbulence means the Bank of England is expected to cut rates more quickly, which means more sub-4% mortgages have appeared although demand would falter if things got too bumpy.”