New buyer demand slipped to a new -32% in March, the weakest level since September 2023, the UK Residential Property Survey from RICS found.

This represents a reduction from a net -16% in February, and indicates that new purchases fell off ahead of the stamp duty thresholds rising at the start of April.

For agreed sales, the March net balance of -16% also represents a slight further deterioration from -13% the month before.

Simon Rubinsohn, chief economist of RICS, said: “The expiry of the stamp duty break was always going to lead to a pause in activity in the sales market.

“However, the latest results, and indeed the anecdotal remarks from respondents to the survey, suggest that the shift in sentiment has been aggravated by the slew of negative macro newsflow over the past few weeks.

“Looking forward, the impact on the market will in no small part depend on how the economy is affected by the emerging trade war and the response of the Bank of England to the shifting environment.

“For now, it is noteworthy that the longer-term RICS expectations metrics are still relatively resilient, but they have the potential to be blown off course if the tariff headwinds intensify.”

House price sentiment stood at +2% this month, easing from readings of +20% and +11% in January and February.

In the rental market, a rise in tenant demand was suggested by a net balance of +20.

This is the first month since October where contributors cited an increase in lettings demand.

Looking to next month, RICS warned that the impact on the UK property market from newly-imposed US global tariffs and potential tariff responses by other nations may stimulate further uncertainty going forward.

Tom Bill, head of UK residential research at Knight Frank, said “As buyers adapt to higher rates of stamp duty from this month, they also face headlines about a global recession sparked by US tariffs.

“While that may not be conducive to positive sentiment, the good news is that markets now expect the Bank of England to cut rates three times this year rather than two to deal with a possible economic slowdown.

“Ideally, the appearance of more sub-4% mortgages would be accompanied by an end to the gyrations seen on money markets in recent days. The risk is that tariffs may ultimately prove to be inflationary and the spillover effects mean upwards pressure on mortgage costs in the UK.

“For now, the housing market feels steady although the prospect of a tax-raising autumn Budget will throw more uncertainty into the mix later this year.”

Via @PropertyWire