RICS Residential Market Survey July 2025

Buyer demand and sales lose momentum after earlier recovery signs

The sales market weakened in July, with demand and agreed sales slipping back into negative territory after modest gains in June.
New buyer enquiries posted a net balance of -6%, down from +4% last month, with the sharpest drops in East Anglia, the South East, and the South West.
Agreed sales fell to -16%, from -4% in June, signalling renewed pressure on transaction volumes.
Near-term sales expectations softened to +1% (from +7%), indicating a largely flat outlook for the next three months.
Over 12 months, sentiment remained positive but eased, with +8% anticipating sales growth (vs +12% previously)

New listings still growing, but pipeline indicators point to a slowdown

New sales instructions held in marginally positive territory at +9%, in line with June, signalling only modest growth in supply.
Market appraisals edged down to +4%, the weakest since December 2024, suggesting a flatter flow of future instructions.

House prices edge lower nationally, but regional contrasts persist

The national house price indicator slipped to -13% (from -7% in each of the past two months), pointing to a small average decline.
Prices continued to rise in Northern Ireland, Scotland, and the North West, but fell more sharply in East Anglia.
Near-term price expectations remained mildly negative, while the 12-month outlook was still positive at +19%, albeit the lowest reading since January 2024.

Rental market remains supply-constrained despite easing in tenant demand

Tenant demand was broadly steady, with a net balance of +4% (down from +14% last quarter).
Landlord instructions dropped sharply to -31%, the weakest since April 2020, deepening the supply squeeze.
Rental price expectations stayed high, with +25% expecting further rises in the next three months, supported by the lack of available stock.