The latest, January 2026, UK Residential Market Survey by RICS shows tentative signs that the housing market may be turning a corner, according to the report.
Whilst overall activity remains subdued, several key indicators have continued to improve, recording their least negative readings in months, says RICS, which added that survey respondents are increasingly confident that sales activity will strengthen as the year progresses, even as near-term conditions remain challenging.
New buyer enquiries improved again in January, with the net balance rising to -15%, an increase from -21% in December and -29% in November, signalling easing downward pressure on demand. Agreed sales followed a similar trend, with the latest net balance of -9%, the least negative reading since June 2025.
House prices at a national level appear to be stabilising. The net balance for prices over the past three months stood at -10%, improving steadily from a low of -19% in October 2025. Although momentum remains weak overall, the consistent improvement over recent months suggests a potential turning point is emerging.
Regional performance continues to diverge. Price growth remains strongest in Scotland and Northern Ireland, with upward trends also reported in the North West and North of England. In contrast, London, the South East, South West and East Anglia continue to lag behind the national average reflecting ongoing affordability challenges, though conditions in these areas have also improved modestly.
Looking ahead, sentiment around the medium-term outlook has strengthened notably. While expectations for sales over the next three months eased to a net balance of +4%, reflecting short-term caution, optimism over the next twelve months surged to +35%, the strongest reading since December 2024. Price expectations show a similar pattern, with +43% of respondents anticipating higher prices over the year ahead which is the most positive outlook since February 2025.
In the lettings market, tenant demand edged higher in the three months to January, ending two consecutive quarters of flat or negative readings. However, supply remains constrained, with landlord instructions still firmly negative. As a result, rental prices are expected to continue rising in the near term.
Overall, the January survey points to a housing market that may be entering the early stages of recovery, according to the report, which adds that while affordability pressures, economic uncertainty and regional disparities persist, improving sentiment suggests conditions could strengthen as 2026 unfolds.
RICS chief economist, Simon Rubinsohn, said: “There are early signs that market conditions may be improving after a challenging period, although activity levels are still subdued, meaning any recovery is likely to be gradual. While the strengthening twelve-month outlook is encouraging, near-term expectations remain relatively soft, reflecting ongoing economic uncertainty. Whether this tentative improvement develops into sustained momentum will depend heavily on the trajectory of mortgage rates and broader macro confidence over the coming months.”
However, in early February, Zoopla reported a 37% increase in the number of homeowners listing their properties for sale on the platform during 2025, with January listings per estate agent at an eight year high.
The portal’s homeowner audience expanded by 1.2m subscribers during the year, reaching a total of over 5m subscribers by year-end. Rich Hayes, chief operating officer at Zoopla, stated: “We are investing to help agents grow their businesses with a focus on driving tangible return on investment through high-quality homeowners, market-leading products, and unique data and insights.”
The increase in listings comes as estate agents reported having more homes to sell on average in January than in any other January for eight years, according to Zoopla’s earlier market data.
Each agent had an average of 32 properties on their books at the start of 2026, marking what the portal described as an “early rebound” following reduced activity in the final months of 2025 after the autumn Budget.
The rise in listings reflects increased homeowner engagement with property valuation tools and sales platforms. The data suggests a recovery in market activity following the period of uncertainty that affected transaction volumes in late 2025, the firm added.
Rightmove has also just reported a rise in property listings, stating that the number of homes for sale is now at an 11-year high. It’s most recent report highlights that more owners have come to the market, pushing the number of homes for sale to its highest level for this time of year in more than a decade.
The company reported: “The number of homes for sale is at an 11-year high for this time of year, giving buyers more choice and negotiating power.”
With more properties available and mortgage rates easing from last year’s highs, the balance in the market has shifted slightly in favour of buyers. Crucially, wage growth has outpaced property price rises over the past three years, improving affordability in relative terms, which Rightmove added is making “2026...a good year to buy.”
