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Britain's housing market showed signs of stabilisation during the past month, according to a survey by the Royal Institution of Chartered Surveyors. Measures of house prices and new buyer enquiries improved, pointing to easing downward pressure after a prolonged slowdown. The findings support recent data from major mortgage lenders indicating rising home prices. Although activity levels remain subdued, confidence about sales prospects over the next year has strengthened, helped by greater clarity around fiscal policy. Experts caution that any recovery is likely to be gradual due to ongoing affordability challenges.
Britain's housing market slowdown showed signs of easing during the past month, according to a survey released by the Royal Institution of Chartered Surveyors, adding to growing indications that conditions may be stabilising after a prolonged weak phase. The findings align with recent updates from major mortgage lenders, which have also pointed to a modest rise in home prices, suggesting that buyer sentiment may be slowly improving despite overall activity remaining muted. Advertisement
The RICS survey indicated that key indicators tracking buyer demand and pricing pressures moved closer to neutral territory. The house price balance improved to minus 10 per cent, marking its strongest reading since mid-2025 and an improvement from the revised minus 13 per cent recorded previously. This outcome was marginally better than market expectations, which had anticipated a slightly weaker reading. Although still in negative territory, the shift suggests that price declines are easing across parts of the country.
Buyer interest also showed signs of recovery. The measure tracking new buyer enquiries rose to minus 15 per cent from minus 21 per cent, reaching its highest level since the middle of last year. This improvement points to a gradual return of prospective buyers who had stayed on the sidelines during the recent downturn, largely due to higher borrowing costs and economic uncertainty.
RICS Chief Economist Simon Rubinsohn noted that there were early indications of improving market conditions after a difficult period, but stressed that transaction volumes remained subdued. He indicated that any recovery was likely to be slow and uneven, rather than sharp, as affordability constraints continued to weigh on demand.
The survey also highlighted a notable improvement in sentiment about the year ahead. Expectations for sales over the next 12 months rose to their highest level since late 2024, reflecting increased confidence among property professionals. Analysts have linked this shift partly to improving clarity around fiscal policy following the UK government's budget announcement towards the end of last year, which helped reduce uncertainty around potential tax changes.
The housing market has been under pressure since 2023, as higher interest rates, persistent inflation, and weaker household budgets dampened demand. While recent data suggests the worst of the downturn may be passing, industry participants remain cautious, noting that lending conditions and broader economic growth will play a key role in shaping the pace of recovery.
Source Reuters
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