Forward-looking indicators indicate little improvement although respondents anticipate increase in sales volumes 

Buyer demand and sales volumes remain “firmly in negative territory”, according to the latest results from the RICS UK Residential Market Survey.

The survey’s findings for November showed a headline net balance of -32%, down from -24% previously and the weakest reading since late 2023. Meanwhile, the latest net balance of -23% for agreed sales was almost unchanged from last month’s -24%.

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Source: Shutterstock

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%.

Forward-looking indicators did not suggest any meaningful near-term improvement. The near-term sales expectations series posted a net balance of -6%, but this was weaker than the previous -3%.

However, a net balance of +15% of respondents anticipate that sales volumes will pick up over the year ahead, a more positive result than the +7% recorded last month. 

On house prices, survey feedback pointed to a gentle decline at the aggregate level, posting a net balance of -16% in November.  However, this was marginally less negative than last month’s -19%, implying that the trend could be flattening.

“A decline in buying activity and cooling tenant demand could pose challenges for landlords heading into the new year,” said Emma Cox, managing director of real estate at Shawbrook, commenting on the figures.

“With little in the way of incentives or much-needed support for first-time buyers in the recent Budget, this looks set to continue as we close out 2025. 

“As a result, professional landlords will likely turn to other, higher yielding asset classes such as HMOs and semi-commercial property, a trend we have seen throughout this year, in order to remain profitable in light of any headwinds. 

“While the landscape appears uncertain in the short term, weakening house prices and favourable mortgage rates may encourage professional landlords to add to their portfolios.”