Housing market continues to weaken with no turnaround in sight, RICS survey finds

The housing market is continuing to weaken with no signs of a turnaround expected until next year, according to the Royal Institution of Chartered Surveyors.

The RICS’ latest UK Residential Market Survey found buyer demand and agreed sales remain in negative territory for the third consecutive month with this subdued picture likely to persist into early 2026.

The net balance for new buyer enquiries slipped further to -19%, the third successive month of decline, while agreed sales posted a net balance of -16%,  indicating a continued slowdown despite being a slight improvement from August’s -24%.

The national price balance of -15% points to modest downward movement, with the South East and East Anglia experiencing the sharpest declines, although Scotland and Northern Ireland remain outliers with modest price gains.

New vendor instructions also recorded a -15% balance, the second consecutive monthly drop, signalling a cooling in supply.

Respondents to the survey expected no imminent recovery in sales volumes with near-term and twelve-month expectations both at -9%, although a net balance of +12% of respondents expect prices to rise again over the next year.

Surveyors across the country cited concerns over the upcoming November Budget, which many expect to include further property-related taxation. Respondents reported growing caution among buyers and sellers, with affordability and sentiment acting as key constraints.

RICS head of market research and analytics Tarrant Parsons said: “The housing market continues to struggle for momentum, with seemingly no clear catalyst on the horizon to spark a turnaround over the near-term. Buyer demand remains subdued, while agreed sales are still on a downward trend, reflecting a broader hesitancy in the market. 

“Ongoing uncertainty around potential measures in the upcoming Budget is also likely adding to the prevailing cautious sentiment.”