RICS hails ‘early signs’ of housing market improvement in latest survey

The UK residential property market is showing “tentative signs” of recovery, according to the latest report from the Royal Institute of Chartered Surveyors (RICS).

The January 2026 UK Residential Market Survey recorded month-on-month improvement across several key indicators.

New buyer enquiries rose to a net balance of -15% from -21% in December 2025 and -29% in November. Agreed sales also saw its least negative reading since June 2025 at -9%.

Simon Rubinsohn, RICS chief economist, 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.”

The RICS UK Residential Market Survey is a monthly sentiment survey of chartered surveyors, who are asked a series of questions on a range of topics including workloads, new business enquiries and optimism about the future.

The “net balance” refers to the proportion of respondents reporting a rise in a metric minus those reporting a fall. For example, if 30% reported an increase in workloads and 5% reported a fall, the net balance would be +25%.

Survey respondents reported near term sales expectations of +4%, a flatter figure compared with last month’s +22%. However, a net balance of +35% of participants anticipated an increase in sales activity - the strongest reading since December 2024.

Meanwhile, the aggregate net balance for national house prices over the past three months stood at -10%, up from a low of -19% in October 2025.

Scotland and Northern Ireland experienced the strongest growth, with upward trends also reported in the North West and North of England, while London, the South East, South West and East Anglia have seen lower-than-average growth.

At a national level, the net balance for near-term expectations for house prices over the coming three months stood at -4%, little changed from -5% previously. However, +43% of respondents expected prices to rise over the next 12 twelve months, representing the highest reading since February 2025 and follows an increase in optimism over the past five reports.

Rubinsohn added: “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.”