House prices across the UK have plateaued and price negotiation has returned to the market, according to estate agents responding to the latest RICS survey, marking a significant shift from the competitive conditions of two years ago.
Neil Foster of Walhouse Surveyors & Valuers in Hexham, Northumberland, reported that prices across all residential categories have “at best, plateaued since the autumn” with price negotiation “creeping back into the market where two years ago sealed bids and gazumping were commonplace.”
Foster added that “uncertainty over events in the Gulf are likely to further stall the market for the foreseeable.”
Price reductions and buyer sensitivity
Bruce Collinson of Adair Paxton in Leeds noted that agreed prices are “typically some way, 5% or more, below asking prices,” indicating increased buyer negotiating power compared to the heightened competition experienced in 2024.
Rob Swiney of Jackson Stops in Ipswich characterised current conditions, stating: “The market is open for business but is also very price sensitive at the same time.”
Economic factors weighing on sentiment
Alex McNeil of Bramleys in Huddersfield described the housing market as in a state of “current malaise,” explaining that “there is a sense that the market is being held back by weak job security despite low interest rates.”
The RICS survey indicates that confidence in the UK housing market weakened in February as renewed geopolitical and macroeconomic uncertainty have affected buyer sentiment.
Mark Wood of Blues Property in Cambridge commented on the potential impact of geopolitical events: “The start of the conflict in Iran will change the outlook in the residential market. It was hoped that interest rates would be cut again after a drop in inflation, although now with oil prices already increasing, the hope of an interest rate drop have disappeared. Likely the market will stagnate.”
The survey responses suggest a market correction from the competitive conditions of 2024, with buyers now holding greater negotiating power and price growth stalling across residential categories.
