RICS: Housing market remains subdued

With so much going on in the world, mostly to the detriment of the general economy, it is hardly surprising that some of the key economic indicators are subdued at the moment.

Increasing fuel prices are a direct result of the Russia-Ukraine and US-Iran conflicts impacting crude oil supply, and that decreased supply is forcing prices up as demand remains around the same. At the same time, alongside the increased cost of transporting goods, poor harvests caused by the ongoing effects of climate change, including wildfires and worsening conditions for crop growth, are pushing food prices higher too.

Therefore, there is far less disposable income available to the average household, and expensive plans such as buying a home may necessarily have to be put on hold until the economy in general, and private budgeting, look more encouraging.

Naturally, this applies pressure to the housing market, as those with lower budgets are more likely to withdraw from buying a property until the situation improves.

This is confirmed by the UK Residential Survey for July 2026, published by the Royal Institution of Chartered Surveyors (RICS) on 13 August 2026.

In the report, RICS points out that buyer demand and agreed sales show little sign of the recovery needed. Meanwhile, new buyer enquiries show no meaningful change from the measures taken in June, although, as RICS points out, this is an improvement on the far more negative position reported in March, meaning the pace of demand deterioration has eased.

At the same time, the agreed sales figure has also remained unchanged since June, and is also improved from the more negative report in April this year.

Overall, RICS confirms that sentiment for the future is less bleak, becoming less downbeat, with an improvement in near-term sales expectations. Some of the responses in the survey from estate agents around the country show that the housing market is improving, although it is still far from buoyant.

As Simon Rubinsohn, RICS Chief Economist, said of the report's findings:

"The housing market remains subdued, and while that is not unusual over the summer months, it is clear from the RICS seasonally adjusted data, that the combination of geopolitics, the domestic political climate and the cost of mortgage finance are continuing to weigh on sentiment.

Significantly, the forward-looking metrics also remain downbeat, which is not the sort of climate likely to encourage housebuilders to step on the gas on existing sites or in land-buying, as highlighted in recent trading statements from developers.

Meanwhile, feedback from respondents to the RICS survey is continuing to draw attention to the impact of the latest round of regulation on the rental market, with the key indicator of new instructions pointing to a further drop in supply."

While the market gradually improves, assuming no further disruption on the geopolitical stage and economically at home, you might be thinking of moving home. Now, more than ever, it is vital that, if you've put in an offer on a property that has been accepted by the seller, you take out a suitable building survey so you are clear about the condition and structural integrity of the home. You want to ensure that what you are buying is value for money, and you'll want to know what work needs to be done to it and how much you'll need to budget for it.

So, whatever your plans for moving home and buying your next property, make sure your budget includes the all-important survey. Surveyor Local will connect you to the best professional advice through our nationwide panel of chartered surveyors, all of whom are members of RICS. We only work with chartered surveyors who are RICS members, ensuring the survey you get is always professionally delivered. They will work hard to identify all kinds of problems, including the impact of prior flooding on the structure of the property.

Call to get your no-obligation survey quote started, or to discuss your concerns about the property you're planning to buy.

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