The UK housing market remained subdued in May 2025, with buyer demand and sales activity remaining in negative territory, according to RICS.

There was a 26% net fall in new buyer enquiries, marking the fifth consecutive month of decline, whilst agreed sales also continue to edge lower, returning a 28% net decrease.

Tarrant Parsons, RICS Senior Economist, said: “Sentiment across the UK residential property market remains somewhat subdued, with ongoing uncertainty around global trade policies and the dampening effect of transactions being brought forward ahead of the Stamp Duty changes at the end of March continuing to weigh on buyer activity.  

“However, near-term sales expectations are showing signs of stabilisation, suggesting that while muted conditions may persist in the short term, a further deterioration appears unlikely. Looking ahead, the outlook is more optimistic, with respondents anticipating a gradual recovery in sales activity over the next twelve months.  

“That said, the pace and extent of any improvement will partly depend on the Bank of England’s ability to continue cutting interest rates.”

However, the sales outlook over the next three months has improved slightly, with expectations now broadly flat rather than falling and looking further ahead, 25% of respondents anticipate an increase in sales volumes over the next year, the strongest reading since February. 

On the supply side, new instructions coming to market continue to increase according to surveyors, with a rise of 7% of new listings, marking the eleventh consecutive month of growth. Valuation activity also picked up, with 19% noting an increase in appraisals compared to a year ago, indicating a potentially more active summer market. 

In the lettings sector, tenant demand strengthened once again in May, returning a 22% rise, the highest since September 2024. At the same time, landlord instructions continue to dwindle, with a 34% drop. As a result, rents are expected to rise further in the near term.