Subdued momentum persists in UK housing market amidst Autumn Budget uncertainty

RICS UK Residential Survey September 2025

The latest RICS UK Residential Market Survey reveals that subdued momentum continued to characterise the housing market in September. Buyer demand and agreed sales remain in negative territory for the third consecutive month. Forward-looking sentiment suggests this muted picture is likely to persist into early 2026.

• Buyer interest weakens: The net balance for new buyer enquiries slipped further to -19%, marking the third successive month of decline.
• Sales activity softens: Agreed sales posted a -16% net balance, indicating a continued slowdown despite a slight improvement from August's -24%.
• Downward pressure on house prices: The national price balance of -15% points to modest downward movement, with the South East and East Anglia experiencing the sharpest declines.
• Regional divergence persists: Scotland and Northern Ireland remain outliers, continuing to see modest price gains.
• New listings slowing: New vendor instructions recorded a -15% balance, the second consecutive monthly drop, signalling a cooling in supply.
• Rental market tightens further: Tenant demand was broadly flat (-1%), while landlord instructions dropped sharply to -38%, the lowest since May 2020. Rents are expected to rise by around 3% over the next year.
  

Survey participants indicate no imminent recovery in sales volumes, with near-term and twelve-month expectations both at -9%. While short-term price pressures remain negative (-21%), a net balance of +12% of respondents expect prices to rise again over the next year.

Across the rental market, the imbalance between demand and supply remains acute. Landlords continue to exit the sector amid ongoing regulatory changes and cost pressures. As a result, rents are projected to rise steadily through 2026, exacerbating affordability challenges for tenants.

Surveyors across the country cited concerns over the upcoming November Budget, which many expect to include further property-related taxation. Respondents reported growing caution among buyers and sellers, with affordability and sentiment acting as key constraints.

RICS Head of Market Research & Analytics, Tarrant Parsons, said: "The housing market continues to struggle for momentum, with seemingly no clear catalyst on the horizon to spark a turnaround over the near-term. Buyer demand remains subdued, while agreed sales are still on a downward trend, reflecting a broader hesitancy in the market. Ongoing uncertainty around potential measures in the upcoming Budget is also likely adding to the prevailing cautious sentiment."

-ENDS-