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, and forward-looking sentiment suggests this muted picture is likely to persist into early 2026.
The net balance for new buyer enquiries slipped further to -19%, marking the third successive month of decline.
Similarly, agreed sales posted a -16% net balance, indicating a continued slowdown despite a slight improvement from August’s -24%.
New vendor instructions recorded a -15% balance, the second consecutive monthly drop, signalling a cooling in supply.
Turning to house prices, the national balance of -15% points to modest downward movement, with the South East and East Anglia experiencing the sharpest declines. Scotland and Northern Ireland remain outliers, continuing to see modest price gains.
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.
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.
Tarrant Parsons, head of market research and analytics at RICS, 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.“
Jeremy Leaf, north London estate agent and former RICS residential chairman, added: “New buyer enquiries, agreed sales, listings and prices are all continuing to soften – but not correct.
“The prospect of higher – not just for property – taxes in the Budget is compromising confidence other than for those who are particularly motivated to move. Looking forward, we see little likelihood of change at least until after the end of November. However, in similar circumstances previously, we have often found the weaker the uncertainty, the stronger the recovery.”
Emma Cox, MD of real estate at Shawbrook, commented: “Reduced buyer demand and declining sales activity remain symptoms of an uncertain market landscape.
“Although interest rates are more stable, and there are signs of house prices cooling, buyers are not pushing ahead with deals. With the Autumn Budget approaching, it’s likely that first-time buyers in particular are holding off in the hope that some form of incentive will be introduced - especially in the wake of the removal of stamp duty exemption earlier this year."
