The UK residential property market is showing tentative signs that it may be turning a corner, according to the latest RICS UK Residential Market Survey for January 2026.
Whilst overall activity remains subdued, several key indicators have continued to improve, recording their least negative readings in months, RICS said, with survey respondents increasingly confident that sales activity will strengthen as the year progresses.
New buyer enquiries improved in January, with the net balance rising to -15%, up from -21% in December and -29% in November. The improvement signals easing downward pressure on demand, RICS suggested. Agreed sales followed a similar trend, with the latest net balance of -9% being the least negative reading since June 2025.
House prices at a national level appear to be stabilising, with the net balance for prices over the past three months at -10% – up from a low of -19% in October 2025. Although momentum remains weak overall, the consistent improvement over recent months suggests a potential turning point is emerging, RICS said.
Performance differs across the regions, with upward trends reported in the North West and North of England but London, the South East, South West and East Anglia lagging behind the national average.
Sentiment around the medium-term outlook has strengthened notably. Expectations for sales over the next three months eased to a net balance of +4%, reflecting short-term caution, but optimism over the next 12 months has surged to +35%, the strongest reading since December 2024. Price expectations show a similar pattern, with +43% of respondents anticipating higher prices over the year ahead which is the most positive outlook since February 2025.
“Overall, the January survey points to a housing market that may be entering the early stages of recovery,” RICS said. WWhile affordability pressures, economic uncertainty and regional disparities persist, improving sentiment suggests conditions could strengthen as 2026 unfolds.”
RICS chief economist Simon Rubinsohn added:
“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.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said conditions have improved considerably since the start of the year. “This consistently reliable lead indicator of change confirms what we have seen in our offices after a slower than expected few months – confidence is on the up,” he said
“However, an increase in listings as well as appraisals, ongoing worries about the economy and slow pace of anticipated mortgage rate cuts, are keeping transaction lengths up and prices in check.”
