Surveyors from the Royal Institution of Chartered Surveyors (RICS) have revealed that the property market in the UK is still grappling with the issue of mortgage affordability. Their report for September highlights that house prices are receding in almost all regions of the country. The persistently challenging market conditions are largely attributed to high interest rates obstructing the accessibility of mortgages. Additionally, the growing disparity between a diminishing supply of rental properties and the escalating demand is leading to an increase in rental prices.

The report from RICS indicates that the West Midlands and the South East of England are experiencing the most significant downward pressure on house prices. This could be due to a combination of factors, including high interest rates, limited affordability, and a lack of supply in these regions. The report suggests that these areas are struggling the most with the issue of mortgage affordability, which is impacting the property market and leading to a decrease in house prices.

Professionals are predicting that rental prices across the UK will increase by close to 5% on average over the next 12 months. This is likely due to the downward pressure on house prices, which has made it more difficult for people to afford to buy homes. As a result, there is increased demand for rental properties, leading to higher rents. The report suggests that the West Midlands and the South East of England may experience even higher rental price growth, given the significant downward pressure on house prices in these regions.