RICS Residential Market Survey January 2026

Sales market still soft, though sentiment is improving further out

New buyer enquiries remained in negative territory at -15% in January (from -21% in December and -29% in November).
Agreed sales improved to -9%, the least negative reading since June 2025, suggesting transaction activity is beginning to stabilise.
Near-term sales expectations eased to +4% (from +22%), pointing to a flatter outlook in the months immediately ahead and continued caution in the near term.
Twelve-month sales expectations strengthened to +35%, the strongest reading since December 2024, as confidence around activity grew over the year ahead.

Supply conditions remain broadly stable, but limited momentum evident

New vendor instructions were broadly flat at +1% in January (vs -1% in December), with little change in the flow of new listings.
Appraisal activity remained weaker than a year ago at -11%, indicating the forward pipeline of potential supply remains fragile.

House prices show signs of stabilisation, though regional divergence persists

The national house price balance stood at -10%, consistent with weak price momentum, but improving for a fourth consecutive month.
Regional divergence continues to widen, with Scotland and Northern Ireland seeing price growth, alongside parts of the North West and North of England, while London, the South East and South West remain softer than the national average.
Short-term price expectations remained slightly negative at -4%, indicating a broadly flat outlook over the next three months.
Twelve-month price expectations rose to +43%, the strongest reading since February 2025, supporting expectations of a gradual recovery through 2026.

Rental market tightens as demand edges higher and supply remains constrained

Tenant demand increased modestly to +13%, ending two consecutive quarters of flat or negative readings.
New landlord instructions remained negative at -24%, underlining continued constraints on rental supply.
Near-term rent expectations strengthened to +28%, reflecting expectations that supply pressures will continue to place upward pressure on rents.