The latest update from the Royal Institution of Chartered Surveyors (RICS) suggests that the housing market took a noticeable hit in November, largely due to the impact of the Autumn Budget. According to the organisation, activity slowed across several key indicators, and any meaningful recovery is now expected to be pushed back until the spring of 2026.
RICS’ UK Residential Market Survey for 2025 shows that buyer interest weakened further during the month, reaching levels not seen since late 2023. This downturn was also reflected in sales activity and the number of new homes coming onto the market, which remain in negative territory.
One important detail highlighted by RICS is that around three quarters of survey responses were submitted after the Budget announcement. This means the data offers one of the clearest early views of how the fiscal changes have influenced market sentiment.
New buyer enquiries fell sharply in November, with a net balance reading of -32%. This compares with -24% in October and marks the lowest level of demand recorded since the latter part of 2023. The figures suggest that potential buyers are increasingly hesitant as economic uncertainty continues.
Agreed sales also remained subdued. The net balance for completed or newly agreed transactions stayed at -23%, indicating that many deals are still failing to progress or that fewer buyers are committing to purchases.
Sales expectations for the near term weakened as well. The balance dropped to -6% from -3% in October, signalling growing doubts about improvement in the coming months. For estate agents and surveyors, this reflects continued caution among both buyers and sellers.
New instructions also remained low, with a net balance of -19% compared with -20% previously. This suggests that fewer homeowners are choosing to list their properties for sale, further limiting the supply of available homes.
Another concern raised in the report is the fall in property valuations. A net balance of -40% of respondents said that appraisal activity is lower than it was a year ago. This drop points to ongoing weakness in the pipeline for future listings, making it unlikely that supply conditions will improve quickly.
Despite the overall subdued picture, there was a small sign of optimism. A net balance of +15% of respondents expect sales volumes to improve over the next three months. This is a modest rise compared with the +7% recorded in the previous month.
This optimism appears to be influencing house price expectations. Although 15% of respondents do not believe prices will rise within the next year, a larger share—24%—expect values to increase over the same period. This suggests some confidence that 2026 could deliver better market conditions.
However, the survey also highlights clear divides across different regions of the UK. In London, expectations dropped sharply, with a net balance of -44%. This is more negative than any other part of the country and has partly been linked to the potential introduction of a mansion tax.
In contrast, property professionals in Northern Ireland and Scotland are continuing to report upward pressure on prices. Both regions seem to be bucking the national trend, suggesting that local market conditions remain comparatively robust.
RICS chief economist Simon Rubinsohn noted that the housing market has been struggling to gain traction for several months. He commented that the latest Budget, while helpful in providing clarity, is unlikely to dramatically change the current situation in the short term.
Rubinsohn added that although market uncertainty has eased, affordability issues and higher borrowing costs are expected to constrain activity for the foreseeable future. He did, however, point out that expectations for interest rate cuts over the next year have improved slightly.
Tom Bill, head of UK residential research at Knight Frank, echoed similar concerns. He explained that the intense speculation around property taxes before the Budget had dampened confidence among both buyers and sellers. Now that details are clearer, he expects existing transactions to move faster in the run-up to Christmas.
Bill also noted that early 2026 could see a stronger start if interest rates begin to ease. However, he warned that political uncertainty may become a bigger risk, particularly if the next round of local elections brings significant change. The uncertainty over possible tax changes could soon shift to uncertainty over who will be Chancellor.
Download NOW
4 Simple Steps To Becoming Wealthy Through Property