House sales continued to slow last month while the rental market picked up pace as prospective buyers put off purchases amid the surge in mortgage rates.
Inquiries among new buyers fell for a sixth consecutive month in October and the average time taken to complete a sale rose as buyers became wary about a looming recession, according to the latest survey from the Royal Institution of Chartered Surveyors.
The net balance for new buyer enquiries fell sharply to -55 per cent in October, down from -36 per cent the month before, suggesting that prospective buyers are increasingly cautious about purchases as financial conditions deteriorate.
House price growth, which hit record levels during the pandemic, has ground to a halt as people’s budgets are squeezed.