RICS: UK housing market remains subdued, but downturn shows signs of easing

UK Residential Survey June 2026

The UK housing market continued to show weak momentum in June, although the latest Royal Institution of Chartered Surveyors (RICS) UK Residential Market Survey signals that the recent downturn may be easing. RICS members expressed ongoing concerns about the impact of inflation, the cost of living, domestic political uncertainty and global conflicts, with some sharing hopes that the cessation of the Iran War will boost market conditions.

New buyer enquiries remained negative, with a headline net balance of -29%, but this was a marginal improvement on the -34% recorded in the previous two months and marks the least negative reading since February. Newly agreed sales also remained subdued, posting a net balance of -32%, compared with -35% previously.

While these figures continue to indicate a challenging sales market, near-term sales expectations improved to -16%, up from a recent low of -34% in March. Looking further ahead, respondents expect sales volumes to remain broadly flat over the next twelve months, with a net balance of +1%.

Supply conditions appear to be tightening. New instructions to put properties on the sales market fell further into negative territory, dropping to -23% from -10% previously, the weakest reading in over a year. Market appraisals also declined, suggesting the pipeline of homes coming to market might remain constrained in the months ahead.

House prices continue to face downward pressure at a nationally overall. The headline price balance came in at -33%, broadly unchanged from -34% in May and -35% in April. The South East and South West of England continue to report more negative price trends than the UK average, while Northern Ireland and Scotland remain more positive.

Near-term price expectations also remain subdued, although less negative than before, moving to -32% from -44%. Over the next twelve months, the outlook is modestly positive, with a net balance of +8% of respondents expecting prices to rise, up from +6% previously.

In the lettings market, tenant demand picked up, with the headline net balance rising to +18%, the strongest reading since May 2025. Landlord instructions remained negative at -18%, pointing to continued supply constraints. Against this backdrop, rents are expected to continue rising, with projected rental growth over the next twelve months standing at around 2.5%.

The North of England continues to express more positive sentiment than the South generally. The North, like the Celtic nations, expresses generally stronger sentiment. Dan Stocks MRICS, a surveyor in Guildford, said: "Market uncertainty remains due to Labour leadership changes, cost-of-living pressures, fuel prices, the ongoing Russia-Ukraine war and the recent conflict involving Iran, all of which continue to weaken confidence."

Whilst expressing similar concerns, Paul Mcskimmings of Edward Watson Associates in Newcastle-upon-Tyne was more optimistic: "Despite difficulties with world conflicts and political instability at home, instructions have remained constantly high. It will be interesting to see what happens to the market following a change of prime minister."

RICS Head of Market Research & Analysis, Tarrant Parsons, said: "June's survey results offer some cautious encouragement that the worst of the slowdown in market activity may be beginning to pass, with several key indicators moving in a less negative direction for a second consecutive month. That said, any nascent improvement remains fragile and is now being tested by renewed political uncertainty on the domestic front.

"While the Bank of England left interest rates unchanged, uncertainty around the outlook for inflation and borrowing costs continues to weigh on sentiment, even if the recent decline in oil prices is a welcome development. Until there is greater clarity over both the political backdrop and the path of interest rates, housing market activity is likely to remain relatively subdued in the near term."

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