Activity across the Welsh housing market was muted through September according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, and the rise in mortgage rates appears to be weighing on the sales and pricing outlook.
A net balance of -49% of respondents in Wales report that there was a fall in new buyer enquires in the most recent survey. This is the lowest this balance has been in nearly a year (since November 2025).
On the supply side, a net balance of -4% of respondents in Wales reported that new instructions to sell had fallen, which is down from the net balance of 18% seen in the August report.
With demand and supply both subdued, sales followed the same pattern. A net balance of -13% of respondents reported that newly agreed sales had fallen through September.
Looking at pricing, Welsh surveyors report that prices fell over the past three months. A net balance of -15% report that prices have declined, which is down from the 9% that was seen in the survey previous.
On the outlook, surveyors remain cautious. With regards to pricing, a net balance of -10% of respondents in Wales believe that house prices will fall over the next three months, and similarly a net balance of -10% of Welsh respondents expect that sales will fall through the final quarter of the year.
Commenting on the sales market, Anthony Filice FRICS of Kelvin Francis Ltd. in Cardiff said that there were still sales happening though:
“Buyers, though lower in numbers, seem confident in their investment, although they are making lower offers.”
David James FRICS of James Dean in Brecon added:
“There are still plenty of sales happening, even though it feels a tougher market.”
Commenting on the UK picture, RICS Head of Market Research and Analysis, Tarrant Parsons, said:
“A renewed rise in interest rate expectations has created a fresh headwind for the housing market, with buyers becoming a little more cautious and sales activity losing some momentum this month. Even so, the latest results do not point to any significant shift in direction. Rather, they suggest the market may need to contend with a somewhat longer period of subdued activity as households adjust to the prospect of borrowing costs remaining higher than previously anticipated.”
