The UK housing market is showing noticeable weakening as buyers grow concerned about the conflict in the Middle East and the potential for higher mortgage rates amid rising energy prices. According to the Royal Institution of Chartered Surveyors (RICS), the index of new buyer enquiries fell from -15 in January to -26 in February, the lowest level since December. Short-term sales expectations dropped to -2, marking the weakest reading since November. Current house prices declined, and near-term forecasts deteriorated, reflecting reduced confidence in the market.

At the same time, tenant demand remains stable despite the limited supply of properties from landlords. Rising geopolitical tensions and higher energy prices continue to weigh on consumer sentiment, which could put pressure on the pound and affect the dynamics of the GBP/USD pair.