Tenant demand held steady in the three months to July 2025, recording a 4% increase according to the Royal Institution of Chartered Surveyors (RICS) UK Residential Survey.

With a 31% fall in properties being made available for rent, rental prices are anticipated to continue to rise over the next three months.

Simon Rubinsohn, RICS Chief Economist, said: “The somewhat flatter tone to the feedback to the July RICS Residential Survey highlights ongoing challenges facing the housing market. Although interest rates were lowered at the latest Bank of England meeting, the split vote has raised doubts about both the timing and extent of further reductions. Meanwhile, uncertainty about the potential contents of the Chancellor’s autumn budget is also raising some concerns. Against this backdrop, respondents continue to report that the market remains particularly price sensitive at the present time.”

Although there was a fall in agreed sales, down 16% on June 2025, there was a 9% increase in the number of new listings coming onto the market.

Although house prices at the national level have fallen, prices continue to rise in Northern Ireland and Scotland, while respondents based in the North West of England are also seeing prices move higher. Prices are however reportedly falling at a more significant rate than the national average (in net balance terms) across East Anglia.

Zaman Sheikh, RICS Registered Valuer at Northwood Chelmsford & LVP Surveyors, said: “The sales market in July has been quiet, this could be due to seasonal demand but we feel personally due to a high number of Landlords exiting the sector has caused a large over supply of property on the market, in particular flats. Flats are becoming more difficult to sell.”