Housing market 2026: what RICS forecasts for buyers and sellers

For those wanting to buy or sell a home in 2025, it was certainly a better start for the year than it was by the time it ended.

With bolstered impetus created by the conclusion of the stamp duty relief for first-time buyers, who made up a large percentage of those buying a home during the year, this was tempered by the weeks of financial uncertainty that were generated regarding the potential contents in the Autumn Budget in November.

With all that behind us and with the positivity that is always generated by the start of the new year, it would appear that the property market has bounced back to a degree, helping both buyers and sellers in equal measure.

Each month, financial institutions release their assessments of the health of the property market - unsurprisingly, often directed at the success of sales and the impact on mortgage products - with most suggesting that 2026 sees the property market rising from the trench created by the uncertainty generated at the end of 2025.

The Royal Institution of Chartered Surveyors (RICS) also produces a variety of reports and assessments regarding the property market and how buyers and sellers might be affected by its nuances, called the UK Residential Survey.

The latest report, issued on 15 January and covering the month of December 2025, largely supports the findings of the financial companies in that there is increased optimism for the market in 2026, driven by the increased clarity after the Autumn Budget, which had dulled the market towards the end of 2025.

Demand for properties in both the near-term and the twelve-month projections have turned increasingly and significantly positive, while the position on sales supply has now stabilised after the rocky end to the year.

Buyer enquiries and agreed sales

However, the December UK Residential Survey shows that both new buyer enquiries and agreed sales registered negative growth, which is a reflection on a year that has seen subdued interest overall. Nevertheless, both figures (-24% and -19%, respectively across the year) saw an improvement in December against the figures for November, which RICS reads as a signal that the downturn is losing its momentum and traction.

Forward-looking sentiment shows strong improvement

Even though those figures might make grim reading, the important data from the RICS report comes with looking at the forward-looking sentiment: sales expectations over the next three months is showing its best figure since the end of 2024 with a rise of 22%, while the twelve-month sentiment forecast has risen by 34%, which is more than double the result compared with the previous month of November.

The supply of new housing stock to the market has shown a stabilisation to 0% net balance, but RICS advises a note of caution that any meaningful rise in the stock balance will take some time to materialise and to be noticed.

Finally, RICS notes that there is a downward trend in average house prices, edging down slowly, but this is starting to bottom out. There are also very different experiences on a regional basis, so that, while prices are dropping the most significantly in London and the South-East, the more northern regions, including Scotland and Northern Ireland, still show a strong growth pattern. Overall, though, the expectation from the report is that house prices will show a general improvement across the year as the housing market bounces back from the issues in 2025.

So, while things might appear somewhat subdued as the end of 2025 arrived, it appears that there is evidence from the RICS survey that the housing market is turning a corner. This is helped by the expected cut in interest rates, which in turn will improve the mortgage products and jump-start wavering buyers to get into the market. Confidence, too, is generally building, which can only increase the positive effect on the housing market.

As Tarrant Parsons, RICS Head of Market Research & Analysis, said of the survey findings:

"The UK residential market remains in a prolonged soft patch, with December's survey recording a sixth consecutive month of negative momentum in buyer enquiries. "That said, there are tentative signs of a shift in sentiment beneath the surface. "Near-term sales expectations have strengthened, and the twelve-month outlook has edged into more positive territory. "The key test for 2026 will be whether borrowing costs ease on a sustained basis. If so, this could provide the catalyst needed to drive a recovery in buyer demand."

When you are ready to buy your next home, it is an exciting but potentially formidable time. Which is why it's important to make sure you are buying the right property for the amount of money you've offered. To do that, you need an independent evaluation of the property's condition, carried out by an experienced chartered surveyor with RICS accreditation so that you know that you'll get a job well done.

Surveyor Local will connect you to the best professional advice through our nationwide panel of chartered surveyors, all of whom are members of the RICS. We only work with chartered surveyors who are members of RICS, ensuring the survey you get is always professionally delivered.

Call  to get your no-obligation survey quote started, or get a quick quote online.