Whilst the UK housing market remained soft at the end of 2025, confidence is returning as expectations for sales and prices turn decisively more positive, according to RICS.

In the latest RICS UK Residential Market Survey for December 2025, new buyer enquiries registered a net balance of -24%, while agreed sales came in at -19%, however both measures were a slight improvement on the previous month.

RICS Head of Market Research & Analysis, Tarrant Parsons, said: “The UK residential market remains in a prolonged soft patch, with December’s survey recording a sixth consecutive month of negative momentum in buyer enquiries. That said, there are tentative signs of a shift in sentiment beneath the surface.

“Near-term sales expectations have strengthened, and the twelve-month outlook has edged into more positive territory. The key test for 2026 will be whether borrowing costs ease on a sustained basis. If so, this could provide the catalyst needed to drive a recovery in buyer demand.”

Sales expectations for the next three months increased to +22%, the strongest reading since October 2024, whilst optimism strengthened further for respondents looking twelve months ahead, with those expecting sales volumes to rise seeing a net balance of +34% , more than double the level seen in November 2025.

The lettings market however remains under pressure, with tenant demand weakening further in December (-27%), while new landlord instructions were deeply negative (-39%), underlining persistent supply constraints. Rents are expected to keep rising, with average rental growth forecast at around 3% over the next twelve months.