UK Surveyors See Glimmers of Hope in Housing Market Outlook
LONDON, Jan 15 (Reuters) - Britain's housing market is showing signs of recovery, according to a survey by the Royal Institution of Chartered Surveyors (RICS). Despite ongoing challenges, there's a growing optimism among surveyors that the market might be turning a corner.
The survey revealed that while activity remained subdued in December, expectations for sales volumes and prices in 2026 have risen. This positive outlook is attributed to two key factors: the possibility of further cuts in Bank of England interest rates and the resolution of uncertainty surrounding Finance Minister Rachel Reeves' tax plans.
RICS' head of market research and analysis, Tarrant Parsons, noted, "The UK residential market is experiencing a soft patch, with buyer inquiries remaining negative for the sixth consecutive month. However, there are early indications of a shift in sentiment."
The survey's findings are particularly encouraging, with sales expectations for the next three months reaching their highest point since October 2024 at +22. Optimism for the 12 months ahead has more than doubled to +34, the highest since late 2024.
RICS linked this improved confidence to the potential for lower interest rates and the end of speculation about tax hikes in Reeves' budget. While Reeves announced significant tax increases, most were deferred, providing a sense of relief for the market.
The RICS report also highlighted:
- House price gauge held at -14 in December.
- November's gauge was revised up from -16.
- New vendor instructions returned to a net balance of 0% after a prolonged decline.
- Low appraisal activity suggests a gradual increase in stock.
- Tenant demand weakened in December.
- New landlord instructions remained deeply negative.
This survey offers a glimmer of hope for the UK housing market, suggesting that the worst might be over. However, it remains to be seen whether this optimism will translate into tangible market improvements.
