RICS Residential Market Survey October 2025

Sales market remains subdued as demand and sales activity weaken further

New buyer enquiries fell again in October, with the net balance slipping to -24% (vs -21% in September), the weakest since April and indicating that buyer demand continues to contract across most regions.
Agreed sales also softened, with the latest reading of -24% (vs -17% previously) underlining a further decline in transaction activity.
Near-term sales expectations were broadly flat at -3% (an improvement on -10% last month), while the 12-month outlook strengthened to 7%, pointing to a more optimistic view of sales activity through 2026.
Survey contributors reported that continued uncertainty around potential tax-raising measures in the upcoming Budget is weighing on buyer and seller confidence.

Supply indicators contract after earlier stability

New vendor instructions dropped to -20%, marking the third consecutive monthly decline and the weakest reading since 2021, following a period of predominantly positive results over the past year.
Market appraisals fell sharply to -37%, signalling that appraisal activity is now running well below levels seen twelve months ago and pointing to a thinner pipeline of future listings.

House prices face modest downward pressure, led by softness in southern regions

The national house price balance edged lower to -19% (vs -17% last month), consistent with ongoing modest downward pressure on prices.
The decline is most evident in the South East, London, and East Anglia, where regional price readings remain weaker than the national average.
Short-term price expectations improved slightly to -12% (from -21%), suggesting only a limited further softening in the near term.
Over the twelve-month horizon, sentiment turns positive, with 16% of respondents expecting prices to return to growth.

Rental market shows easing demand but landlord supply continues to tighten

Tenant demand flattened in the latest quarterly series, with the net balance slipping to -4% (from 5% and 13% in the previous two quarters), pointing to a more stable trend in recent months.
Landlord instructions fell sharply to -33%, the weakest reading since April 2020, reinforcing a persistent and deepening shortage of rental supply.
Near-term rent expectations remain in positive territory at 15%, though this is noticeably softer than most readings of the past four years, indicating more moderate rental growth ahead.