House prices will fall in the coming months, say estate agents

Updated: 05:25 EDT, 8 October 2026 House prices are expected to fall over the coming months with fewer buyers out house hunting and fewer sales being agreed, estate agents are warning. This bleak outlook is revealed in the latest survey from The Royal Institution of Chartered Surveyors, which asks its estate agent and surveyor members what they are seeing on the ground. The majority of Rics members reported that house prices were falling in the September survey, more than in August. It comes after Lloyds Bank reported yesterday that house prices remain at a standstill with the average property value the same as it was a year ago.Looking ahead, more Rics members think prices will fall over the coming three months than those who think prices will rise. However, over a 12-month horizon, the survey suggests a more even split suggesting average property prices could remain broadly flat between now and September next year. Gloomy picture: House prices are expected to fall in the final months of this yearMuch of the market slowdown is being attributed to higher mortgage rates putting pressure on what people can afford to buy.Average fixed rate mortgages hit 6 per cent this week with most sub-5 per cent fixed rate deals vanishing. Experts also say buyers are concerned about property tax hikes that could appear in the October 28 Budget. Tom Bill, head of UK residential research at Knight Frank said: 'There is pain in the post for the UK housing market as the impact of higher mortgage costs filters through the system.'Higher borrowing costs will increase downward pressure on prices and transaction volumes in the final months of the year. 'The situation could be exacerbated as buyers and sellers speculate about which of the recurring tax rumours ahead of the Budget proves to be true.'The verdict from estate agents James Ab Ottewell of Alexander Bruce Estates Ltd in Derby says it's been 'possibly the most difficult quarter' he has experienced in the last four decades. He blames 'political uncertainty, huge transaction costs, and economic fear.'Some Rics members say prices have fallen to where they were five years ago while others say there are too many homes coming to market and too few buyers looking.Howard Davis of Howard estate agents in Bristol said his firm is having to reduce prices to secure sales. He says the prices achieved now are on average 'equivalent to approximately five years ago.'David Hickman, a surveyor in South Devon says the situation around him is dire.He says: 'The market is fizzling out. Asking prices are falling, buyers are waiting especially as rates are likely to rise soon. 'Developers are mothballing or in administration as are brick makers. Recession is starting sharply due to redundancies and world context.'Chris Pearson of Baker Pearson estate agents in Weymouth & Portland says there is a widening gap between asking prices and what homes are selling for, suggesting some sellers may still be trying to defy the market.Richard Blythe of Oakhurst Real Estate Ltd, which covers areas from Canterbury to Portsmouth says that large expensive houses and flats are struggling at present. He says there is a 'glass ceiling for buyers over £1.25million' and that anything over this price won’t sell. He also says that flats aren’t selling well either.'Only ones with something special in great areas including parking will sell,' adds Blythe. Standard modest sized flats with no balconies won’t sell.'Tony Jamieson of Clarke Gammon estate agents in Guildford also says flats are a problem area of the market.He says: 'The market is still very difficult with no real activity unless a property is very competitively priced. Town centre flats are massively over supplied so prices are falling.'How to find a new mortgage Mortgage rates have jumped as conflict with Iran has driven up inflation expectations and dashed hopes of interest rate cuts.If you need a mortgage because you are buying a home, or your current fixed rate deal is due to end, you should explore your options as soon as possible. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with expert mortgage advice.Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.Or use L&C’s online Mortgage Finder to search thousands of deals from more than 90 different lenders to discover the best deal for you.Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage