Surveyors Identify Early Indicators of Housing Market Improvement
The housing market is showing initial signs of a potential recovery, according to the latest survey from the Royal Institution of Chartered Surveyors. Property professionals report the least negative readings in months across key metrics, suggesting a gradual turning point may be emerging after a prolonged period of subdued activity.
Key Metrics Show Consistent Improvement
In January, a net balance of 15% of surveyors reported a decline in new buyer inquiries, marking an improvement from 21% in December and 29% in November. While still negative, this trend indicates easing downward pressure on buyer demand. Agreed sales followed a similar pattern, with a net balance of 9% seeing falls—the least negative reading since June of the previous year.
House price declines also appear to be stabilising. A net balance of 10% of professionals reported falling prices in January, compared to a recent low of 19% in October 2025. This consistent improvement over recent months points to a potential shift in market dynamics, though overall momentum remains weak.
Regional Variations and Future Expectations
Price growth remains strongest in Scotland and Northern Ireland, with upward trends also noted in northern England. In contrast, London, the South East, South West, and East Anglia continue to lag behind due to ongoing affordability challenges, though conditions in these areas have improved modestly.
Looking ahead, expectations are strengthening. A net balance of 4% of professionals anticipate increased home sales in the next three months, while a more significant balance of 35% expect rises over the next year—the strongest reading since December 2024. Price expectations are even more optimistic, with a net balance of 43% forecasting higher house prices over the coming year, the most positive outlook since February 2025.
Rental Market Trends and Professional Insights
In the lettings market, tenant demand edged higher in the three months to January, ending two consecutive quarters of flat or negative readings. With rental supply remaining constrained, rental prices are expected to continue rising.
Rics chief economist Simon Rubinsohn commented: "There are early signs that market conditions may be improving after a challenging period, although activity levels are still subdued, meaning any recovery is likely to be gradual. Whether this tentative improvement develops into sustained momentum will depend heavily on the trajectory of mortgage rates and broader macro confidence over the coming months."
Property professionals across the UK provided mixed but generally positive observations. A Huddersfield-based surveyor noted a "good start to the year with more activity particularly at the entry level and mid-market sectors," while a Birmingham professional reported "a very mixed month in January, with some areas showing great improvement with lots of new instructions and sales and other areas showing much less activity."
A Dorset-based professional highlighted increased activity, stating: "It is typically quiet in January but we have experienced a lot of activity. Sellers who have put their plans on hold are now motivated and we expect good stock to come to market in the spring." In Cardiff, sellers are "amenable to considering offers from buyers able to proceed," and a Glasgow professional projected "a stable but growing projection for the Scottish housing market has been made for 2026."
These insights collectively suggest a cautiously optimistic outlook for the housing market, with early indicators pointing toward gradual recovery amid ongoing economic uncertainties.
