The UK housing market is showing “early signs” of recovery, even as activity remains subdued and regional disparities widen, according to surveyors.
A net balance of 15% of professionals reported a fall in new buyer enquiries in January, according to the Royal Institution of Chartered Surveyors’ (RICS) residential survey. Although still negative, this is an improvement on December’s reading of 21% and November’s 29%, signalling moderation in the pace of decline.
Agreed sales followed a similar trajectory. A net balance of 9% of respondents saw a fall in sales, the least negative reading since June 2025.
House prices appear to be stabilising. A net balance of 10% of professionals reported prices falling over the past three months, an improvement from the recent low of 19% in October 2025. While overall momentum remains weak, RICS said the consistent improvement in recent reports suggests a potential turning point is emerging.
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Simon Rubinsohn, chief economist at RICS, said: “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.”
“While the strengthening twelve-month outlook is encouraging, near-term expectations remain relatively soft, reflecting ongoing economic uncertainty. 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.”
Regional trends remain uneven and, in some cases, increasingly divergent. Price growth is strongest in Scotland and Northern Ireland, with upward trends also reported in the North West and the North of England. London, the South East, South West and East Anglia continue to underperform the national average, amid affordability pressures, though even in these areas conditions have improved modestly.
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Short-term expectations remain cautious. A net balance of 4% of professionals expect sales to increase over the next three months. Over a 12-month horizon, however, sentiment is markedly more positive, with 35% anticipating a rise in sales, the strongest reading since December 2024.
Price expectations show a similar pattern. A net balance of 43% of respondents expect house prices to rise over the coming year, the most positive outlook since February 2025.
In the lettings market, tenant demand edged higher in the three months to January, ending two consecutive quarters of flat or negative readings. Supply, however, remains constrained, with landlord instructions still negative. As a result, rental prices are expected to continue rising in the near term.