Longer term outlook slightly more resilient
Geopolitical uncertainty is weighing on buyer sentiment and near-term expectations, according to the Royal Institution of Chartered Surveyors.
The body’s UK residential market survey for February 2026 painted a picture of weakened confidence among surveyors, who cited concerns over inflation, interest rates and global instability intensified.
New buyer enquiries dropped from -15% to -26% from January to February, while agreed sales stood at -12% and near-term sales expectations softened to -2%.
The ‘net balance’ figures published in the monthly sentiment survey refers to the proportion of respondents reporting a rise in a particular metric, minus the proportion reporting a fall.
House prices were broadly flat, while surveyors became more cautious on prices in the near term, with expectations falling to -18% from -6%.
Tarrant Parsons, RICS head of market research and analytics, said the survey highlighted “renewed volatility” and that “the deterioration in the geopolitical backdrop has clearly weighed on confidence”.
“The recent rise in oil and energy prices has also increased the likelihood that mortgage rates will remain higher for longer,” he said.
“As a result, near-term expectations have softened. Although the twelve-month outlook remains positive overall, maintaining that trajectory will depend on the recent spike in inflationary pressures easing in the months ahead.”
Sentiment for the longer term was more positive, with a net balance of +17% still expecting sales activity to rise over the next 12 months and +33% expecting prices to edge higher over the same period, though at a more moderate pace than previously anticipated.
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