The newest RICS UK Residential Market Survey reveals that the housing market remained subdued in September, with momentum persevering with to falter. For the third consecutive month, each purchaser demand and agreed gross sales remained firmly in adverse territory. Ahead-looking indicators recommend this muted efficiency is more likely to persist into early 2026.
The newest studies reveals that purchaser demand weakened additional, with the online steadiness for brand spanking new purchaser enquiries falling to -19%, marking a 3rd straight month-to-month decline.
Gross sales exercise additionally remained beneath strain, with agreed gross sales posting a -16% web steadiness. Though this represents a slight enchancment from August’s -24%, it nonetheless signifies a continued slowdown in market exercise.
In keeping with the most recent RICS survey, nationwide home value steadiness got here in at -15%, reflecting modest downward strain on costs. The South East and East Anglia reported the steepest declines.
In distinction, Scotland and Northern Eire remained extra resilient, persevering with to register modest value development, highlighting the continuing regional divergence in market situations.
The provision facet additionally softened, with new vendor directions falling for a second consecutive month, recording a web steadiness of -15%. This alerts a cooling in new property listings as sellers develop extra cautious.
Within the rental sector, tenant demand was broadly flat at -1%, however landlord directions dropped sharply to -38%, the bottom stage since Might 2020.
With the availability of rental properties persevering with to shrink, rents are anticipated to rise by round 3% over the following yr. Surveyors anticipate this pattern will persist into 2026, exacerbating affordability points for tenants.
Survey contributors reported little optimism for a near-term restoration in transaction volumes. Each short-term and 12-month gross sales expectations stood at -9%.
Whereas short-term value expectations stay adverse at -21%, a web steadiness of +12% of respondents anticipate home costs will rise over the following yr.
Many surveyors cited rising warning amongst each patrons and sellers, pushed by issues over affordability, market sentiment, and the potential affect of the upcoming November Funds. There may be widespread expectation that the Funds might introduce additional property-related tax measures, additional dampening confidence available in the market.
Because the housing market continues to navigate financial uncertainty and regulatory pressures, the outlook stays cautious, with restricted indicators of near-term restoration.
Tarrant Parsons, head of market analysis & analytics at RICS, stated: “The housing market continues to battle for momentum, with seemingly no clear catalyst on the horizon to spark a turnaround over the near-term. Purchaser demand stays subdued, whereas agreed gross sales are nonetheless on a downward pattern, reflecting a broader hesitancy available in the market. Ongoing uncertainty round potential measures within the upcoming Funds can also be probably including to the prevailing cautious sentiment.“