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Simon Rubinsohn
The UK residential property market is beginning to show early signs of stabilisation, according to the latest RICS UK Residential Market Survey for January 2026.
While overall activity remains subdued, a number of key indicators have continued to improve, posting their least negative readings in several months. Survey respondents reported growing confidence that sales volumes will strengthen over the course of the year, despite near-term conditions remaining difficult.
Buyer demand continued to improve in January. The net balance for new enquiries rose to -15%, up from -21% in December and -29% in November, indicating that the pace of decline is easing. Agreed sales showed a similar pattern, with the latest reading at -9%, the least negative result since June 2025.
National house prices also appear to be stabilising. The net balance for price movements over the past three months improved to -10%, from a low of -19% in October 2025. Although conditions remain weak overall, the steady improvement points to a gradual reduction in downward pressure.
Regional trends remain uneven. Price growth continues to be strongest in Scotland and Northern Ireland, with further positive momentum reported in the North West and the North of England. London, the South East, South West and East Anglia remain below the national average, reflecting ongoing affordability constraints, though surveyors reported modest improvement in these markets as well.
Outlook indicators strengthened over the medium term. Expectations for sales over the next three months eased slightly to a net balance of +4%, suggesting near-term caution, while twelve-month sales expectations rose sharply to +35%, the highest level since December 2024. Price expectations followed a similar trajectory, with a net balance of +43% anticipating increases over the year ahead — the strongest reading since February 2025.
In the lettings sector, tenant demand increased over the three months to January after two quarters of flat or negative readings. Supply, however, remained restricted, with landlord instructions still in negative territory, pointing to continued upward pressure on rents in the short term.
Overall, the January survey suggests the market may be moving toward early recovery. While affordability pressures, economic uncertainty and regional differences persist, improving demand and sentiment indicate conditions could strengthen as 2026 progresses.
RICS Chief Economist, Simon Rubinsohn, 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.”
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