Subdued momentum persists in the UK housing market amidst uncertainty about the autumn budget, the latest RICS UK Residential Market Survey has found.
Buyer demand and agreed sales remain in negative territory for the third consecutive month, with the forward-looking sentiment suggesting the muted picture is likely to persist into early 2026. The net balance for new buyer enquiries has slipped further, to -19%, marking the third successful month of decline.
‘Having weakened a little further from readings of -8% and -18% in each of the two previous months, the downward trend in buyer demand appears to have become more firmly entrenched of late’, RICS said.
“Moreover, most parts of the UK are now seeing a decline in new buyer interest.”
Agreed sales also continues to slow (-16%), albeit with a slight improvement on August (-24%). New vendor instructions recorded a-15% balance, with the second consecutive monthly drop signalling a cooling in supply.
‘The housing market continues to struggle for momentum, with seemingly no clear catalyst on the horizon to spark a turnaround over the near-term’, said RICS head of market research and analytics Tarrant Parsons.
“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.”
Survey participants – chartered surveyors who operate in the residential sales market – indicate no imminent recovery in sales volumes, with near-term and 12 month expectations both at -9% – the first negative reading since August 2023.
‘As such, this demonstrates that respondents do not foresee any significant turn in sales volume anytime soon’, RICS said.
A net balance of -15% in new listings coming to market adds to the gloomy outlook, and is ‘a noteworthy departure’ following 13 sucessive positive readings into August. Respondents also report the level of market appraisals undertaken over the month is now running below that seen 12 months ago, with a net balance -24% compared to -7% last month.
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.
