UK's housing market cooled further in May as buyer demand weakened following a hike in property transaction taxes and growing concern over global trade tensions, according to Reuters citing a survey released by the Royal Institution of Chartered Surveyors (RICS) on Thursday. RICS' monthly house price balance fell to -8 in May from -3 in April, the weakest reading since July 2024 and below economists' expectations of -4, based on a Reuters poll. "Sentiment across the UK residential property market remains somewhat subdued," said Tarrant Parsons, senior economist at RICS, citing lingering uncertainty over global trade policies and the front-loading of transactions before April's Stamp Duty increase. The survey aligns with recent data showing a slowdown in Britain's housing sector. Bank of England figures indicated that mortgage approvals dropped in April to the lowest in over a year. RICS' gauge of agreed home sales worsened further, while new buyer enquiries posted a net balance of -26 in May—an improvement from -32 in March and April but still firmly negative. While surveyors anticipate a gradual recovery in activity over the next 12 months, the outlook remains tied to future interest rate decisions by the Bank of England, which is widely expected to keep rates unchanged at its upcoming meeting. Attribution: Reuters Subediting: M. S. Salama
