The UK housing market is beginning to show early indications of recovery, according to the latest findings from property surveyors. While overall activity remains relatively subdued, there are growing signs that conditions may be stabilising after a prolonged period of uncertainty.
Data from the Royal Institution of Chartered Surveyors (RICS) suggests that buyer demand is no longer falling as sharply as in recent months. In January, a net balance of 15% of professionals reported a decline in new buyer enquiries. Although this figure remains negative, it represents an improvement from December’s reading of 21% and November’s 29%, pointing to a gradual easing in the pace of decline.
This trend indicates that prospective buyers may be regaining confidence, even as affordability challenges and economic pressures continue to influence behaviour. Higher borrowing costs and cautious household budgets are still limiting activity, but the market appears to be adjusting to the new financial environment.
Sales activity has followed a similar trajectory. A net balance of 9% of surveyors reported a fall in agreed sales during January, marking the least negative result since June 2025. This suggests that transaction levels, while still below normal, are becoming more stable.
The improvement in sales figures reflects a growing alignment between buyer expectations and seller pricing. As vendors adapt to market conditions and adjust asking prices accordingly, more transactions are beginning to progress through the system.
House prices also appear to be settling. Over the past three months, a net balance of 10% of respondents recorded falling prices. This compares with a much weaker position in October 2025, when 19% reported declines, highlighting a steady moderation in downward pressure.
RICS has noted that although overall price momentum remains limited, the consistency of recent improvements suggests the market may be approaching a turning point. Rather than continuing to weaken, prices are beginning to show signs of levelling out in many areas.
Simon Rubinsohn, Chief Economist at RICS, commented that there are early signals of improvement after a challenging period for the housing sector. However, he cautioned that activity remains low and that any recovery is likely to be slow and uneven.
He added that while the outlook for the next twelve months has strengthened, short-term expectations remain soft due to ongoing economic uncertainty. Mortgage rates, inflation and wider confidence in the economy will be key factors in determining how the market performs over the coming months.
Regional performance continues to vary significantly across the UK. Scotland and Northern Ireland are currently seeing the strongest levels of price growth, with positive trends also emerging in the North West and parts of the North of England.
In contrast, southern regions including London, the South East, South West and East Anglia are still underperforming compared with the national average. High property values and stretched affordability remain major obstacles in these areas, although conditions have shown modest improvement compared with late 2025.
Looking ahead, expectations for the near future remain cautious. Only a net balance of 4% of surveyors anticipate an increase in sales over the next three months, suggesting that confidence is building slowly rather than decisively.
However, sentiment becomes far more positive when looking further ahead. Over a twelve-month horizon, 35% of respondents expect sales activity to rise, representing the most optimistic outlook since December 2024.
House price expectations follow a similar pattern. A net balance of 43% of professionals believe prices will increase over the coming year, marking the strongest forecast since February 2025 and reinforcing the view that the market is stabilising.
The rental sector has also shown signs of movement. Tenant demand rose slightly in the three months to January, ending two consecutive quarters of flat or negative readings. This indicates renewed pressure on the lettings market, particularly in urban and high-demand areas.
However, supply remains constrained, with fewer landlords bringing properties to market. As a result, rental prices are expected to continue rising in the short term, driven by limited availability and steady demand from tenants.
Overall, while the UK housing market has not yet entered a full recovery phase, the latest RICS survey suggests that conditions are beginning to improve gradually. The coming months will be shaped by mortgage rates, affordability and broader economic confidence, which will ultimately determine whether these early signs develop into sustained growth across the sector.
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