RICS's latest UK Residential Market Survey has found that the housing market 'weakened further’ in November, as Autumn Budget speculation reached ‘fever pitch’.

The survey reported a net balance of -32% for new buyer housing enquiries in November, down from -24% in October and the weakest reading since late 2023.

The net balance for agreed resi sales stood at -23%, compared with the previous month’s -24%. The headline net balance for new instructions was -19%, compared with a previous -20% reading, indicating a “continued slowdown in the flow of properties being listed for sale”.

Survey respondents said fewer market appraisals are being undertaken than last year, with the net balance dropping to -40%.

Respondents also cited aggregate house price falls, posting a -16% net balance in November, while the net balance in London dropped to -44%.

RICS chief economist Simon Rubinsohn said the market has been “struggling for momentum for several months, and the recent Budget announcements are unlikely to materially shift that picture”.

He added: “The end to Budget-related uncertainty is welcome, but the fundamental challenges of affordability and elevated borrowing costs will probably keep activity subdued in the near term.

“That said, the 12-month outlook has brightened somewhat, likely reflecting a growing sense that the Bank of England may have a little more scope to reduce interest rates than seemed plausible only a short while ago.”

The report also revealed the net balance for landlord instructions in the lettings market remained “deeply negative” standing at -39%.

Respondents said income tax changes on property announced in the Autumn Budget could further reduce new landlord instructions.

Meanwhile, monthly tenant demand fell to a net balance of -22%, the weakest reading since April 2020.

Rubinsohn said: “Although tenant demand appears to be softening, the lack of stock is keeping rental expectations elevated and the additional tax levied on landlords in the Budget is likely to exacerbate this trend.”