RICS report: early signs of housing market recovery

The latest RICS survey points to early signs of recovery in the housing market — but analysts are urging caution while mortgage rates remain uncertain.

The housing market can be quite volatile in its reaction to external pressures. Throughout 2025, it was contending with changes to stamp duty rules for first-time buyers, ongoing geopolitical concerns, the cost-of-living crisis, and uncertainty generated by speculation surrounding the Autumn Budget.

As we entered February, the Royal Institution of Chartered Surveyors (RICS) published its UK Residential Survey Report for January 2026, pointing to early signs of recovery — though a sense of caution remains.

Overall activity in the housing market remains subdued, but several key indicators are showing continued improvement, with RICS noting their least negative readings in months. Respondents to the survey are increasingly confident that sales activity will strengthen as the year progresses.

• New buyer enquiries improved in January, with the net balance rising to -15% from -21% in December — a sign that downward pressure on housing demand is beginning to ease.
• Agreed sales are following the same trend, with a net balance of -9%, the least negative reading since June 2025.
• Average house prices appear to be stabilising nationally, with a net balance of -10% over the past three months, an improvement on the low of -19% recorded in October 2025.
• The North-West and North of England are showing upward trends in house price growth, while London, the South-East, South-West and East Anglia continue to lag behind the national average — though RICS notes that affordability challenges in those regions are also showing signs of easing.

RICS Chief Economist Simon Rubinsohn offered a measured take on the findings:

"There are early signs that market conditions may be improving after a challenging period, although activity levels are still subdued, meaning any recovery is likely to be gradual. While the strengthening twelve-month outlook is encouraging, near-term expectations remain relatively soft, reflecting ongoing economic uncertainty. Whether this tentative improvement develops into sustained momentum will depend heavily on the trajectory of mortgage rates and broader macro confidence over the coming months."

When buying a property, having an independent assessment of its condition gives you the confidence to make the right decision. A qualified chartered surveyor will identify any structural issues, maintenance concerns or hidden problems — including the impact of prior flooding — before you commit.

Surveyor Local connects buyers to a nationwide panel of chartered surveyors, all of whom are members of RICS. Every survey we arrange is professionally delivered to the same high standard.

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