With the recent market turmoil, the continued increase in inflation and mortgage rate rises, the housing market has slowed down, however, property prices remain steady on hold says RICS.

Although the property market has slowed down, the shortage of homes for sale continues to maintain property prices on hold, even though the number of people looking for a new home fell for the fifth month in a row.

The uncertainty of the economy, the continued rise in inflation and the increase in interest rates, have put many buyers and sellers on hold, with many wanting to see how the next few months pan out. With the recent announcement of the new PM Rishi Sunak, many are now holding on to see how the markets will react, what steps he will take to combat inflation, and how the Bank of England will react with the Base Rate.

The Royal Institution of Chartered Surveyors (RICS) confirms that property prices are holding up despite the economic uncertainty, due to the shortage of homes available for sale.

The supply and demand issues we have been facing since the pandemic are expected to continue over the next year, with the market predicting property prices to have a slight dip. Rising mortgage rates and the rise in inflation, are making people cautious about buying or selling their homes. The mini-budget announced by the previous Chancellor hasn’t helped the economic uncertainty with markets dipping, alongside weakening the pound making it more expensing to import goods from abroad. Talks about the UK heading into a recession have also fuelled the UK's economic uncertainty.

Despite the above, property sales have continued, Simon Rubinsohn, RICS Chief Economist, said: “The turmoil in mortgage markets in recent weeks has compounded the increasing level of economic uncertainty resulting from higher energy bills and the wider cost of living crisis, in shifting the dial in the housing market.

“Looking further out, the picture portrayed by the RICS survey has shifted in a negative direction.”

The RICS survey also points to a slight dip in property prices, rather than a sharp fall in the property market. RICS data also shows that their House Price Index suggests the market is pivoting to a buyers’ market rather than a sellers’ one.

The slowdown may mean you might be able to negotiate an offer below the property’s listing price. You may also find yourself with less competition from other buyers, compared to a few months ago when the market was thriving.

For buyers who are buying a property with a mortgage, banks will be carrying out the necessary calculations to ensure that mortgage payments can be made, especially when interest rates are expected to continue to rise.

For sellers, you may find yourself achieving a lower asking price in comparison to if you sold your property in the summer. Despite the drop in the property market, there are still buyers looking for a property, which means that you should be able to sell your property.

With the political turmoil and the recent announcement of the new PM Rishi Sunak, who will most likely make changes to the cabinet, market analysts are now uncertain how the property market will pan out during 2023.