After a prolonged period of subdued activity throughout much of 2025, the UK housing market is showing tentative signs of renewed confidence. The latest RICS survey indicates that while conditions remain challenging, the pace of decline has slowed and forward-looking sentiment has improved.

Buyer demand and agreed sales remained in negative territory in December, reflecting a market that has been soft for much of the past year. New buyer enquiries recorded a net balance of -24%, while agreed sales stood at -19%. However, both figures improved slightly on the previous month, suggesting the downturn may be losing momentum.

Improving Outlook for Sales Activity

One of the most encouraging signals from the survey is the improvement in forward-looking sentiment. Sales expectations for the next three months rose to +22%, the strongest reading since October 2024. Looking further ahead, optimism strengthened significantly, with a net balance of +34% of respondents expecting sales volumes to increase over the next 12 months.

As reported by Financial Reporter, surveyors point to easing interest rate expectations and greater certainty following last year’s Autumn Budget as key drivers behind this improvement in confidence.

Supply Stabilises, Prices Moderate

Supply conditions also appear to be stabilising. New vendor instructions flattened to a net balance of 0%, ending several months of decline. While stock levels remain constrained, this suggests the market has stopped deteriorating, even if a meaningful increase in supply may take time to materialise.

Nationally, house prices continue to edge down, with a net balance of -14%, although the rate of decline is moderating. Regional divergence remains marked, with sharper falls in London and the South East, while Scotland and Northern Ireland continue to report price growth.

Looking ahead, price expectations have improved noticeably. More than a third of respondents now anticipate prices will rise over the next year — the most positive outlook since late 2024.

What This Means for Buyers and Sellers

While activity on the ground remains cautious, the latest survey suggests the foundations are being laid for a more active market as we move through 2026. If borrowing costs continue to ease on a sustained basis, this could provide the catalyst needed to support a recovery in buyer demand and transaction levels.

At Gordon Blair Financial Services, we continue to monitor housing market trends closely. Whether you are considering buying, selling, refinancing or investing in property, understanding how market conditions and interest rate movements affect your options is key to making confident decisions.