FX.co ★ UK House Price Balance Falls Short of Forecasts

The UK Residential Market Survey conducted by RICS indicates a notable shift in house price dynamics, with the house price balance, reflecting the difference between respondents reporting price increases versus declines, registering at +2% in March 2025. This marks a reduction from +20% in January and +11% in February. The current figure also falls short of the anticipated +8%, hinting at a slowdown in price growth in recent months. This pattern is mostly evident across the UK, with exceptions in Scotland and Northern Ireland, where house prices continue to show a stronger upward trend. Looking forward, the short-term sentiment is one of caution, as evidenced by the three-month price expectation series showing a net balance of -26, indicating an anticipated decline in prices. Nonetheless, optimism remains for the long-term, with a net balance of +39% of respondents expecting house prices to increase over the next year.