9:44 AM, 12th June 2025, About 4 weeks ago
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The UK’s housing sector, while still facing challenges, is displaying early indications of stabilisation, according to the Royal Institution of Chartered Surveyors (RICS).
Its May 2025 Residential Market Survey shows the lettings market is witnessing robust growth in tenant interest.
Alongside tenant demand surging to a net balance of +22%, the strongest figure since September 2024, RICS says landlord instructions have plummeted.
There’s a net balance of -34% of surveyors reporting fewer listings.
This imbalance has fuelled projections of rising rents, with a net balance of +43% anticipating higher costs in the coming months.
RICS’ senior economist, Tarrant Parsons, 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.”
He added: “Looking ahead, the outlook is more optimistic, with respondents anticipating a gradual recovery in sales activity over the next 12 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.”
The sales market, though still subdued, is showing glimmers of optimism as new buyer enquiries fell, with a net balance of -26%.
That marks the fifth consecutive month of decline, though at a slower pace than earlier in the year.
Agreed sales also dipped, with a net balance of -28%.
However, the three-month sales outlook has stabilised, and a net balance of +25% of surveyors now expect sales volumes to grow over the next 12 months, the most positive sentiment since February.
House prices remained broadly stable, with a national net balance of -8% in May, slightly down from -3% in April.
Looking ahead, a net balance of +34% of respondents foresees price increases over the next year.
Supply is also improving, with new listings rising for the eleventh consecutive month at a net balance of +7%.
Valuation activity strengthened, with +19% of surveyors noting more appraisals than last year, hinting at a potentially busier summer market.
