The September 2025 RICS Residential Survey indicates that subdued momentum continues to define the UK housing market, with forward-looking sentiment suggesting this generally underwhelming picture is unlikely to change materially in the coming months.
Sales Market Summary: Subdued Momentum and Drifting Prices
| Metric | September Net Balance | Key Finding |
| New Buyer Enquiries | -19% | Marks the third successive month in negative territory, with the downward trend in buyer demand becoming more firmly entrenched across most of the UK.
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| Agreed Sales | -16% | Indicative of weakening sales activity, although slightly less downbeat than the previous month’s reading.
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| New Instructions | -15% | The flow of fresh listings coming onto the market is slowing, marking the second consecutive negative reading following a string of positive reports.
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| House Prices (Past 3 Months) | -15% | House prices continue to drift lower at the aggregate level, albeit at a modest rate of decline. The downward trend is most prominent across the South East (-43%) and East Anglia (-38%), though prices are still rising in Scotland and Northern Ireland.
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| Sales Expectations (12 Months) | -9% | Respondents do not foresee any significant turnaround in sales volumes any time soon.
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| Price Expectations (12 Months) | +12% | While near-term expectations point to further price pressure , a slightly longer-term view suggests house prices will be on the rise again in one year’s time. |
Lettings Market Summary: Falling Supply Driving Rent Rises
The lettings market continues to be characterized by dwindling supply, which is expected to maintain upward pressure on rents:
- Tenant Demand: Monthly tenant demand was more or less flat, evidenced by a net balance reading of -1%.
- Landlord Instructions: Landlord instructions continued to fall, with the September net balance of -38% being the most negative reading since May 2020.
- Rent Expectations: A net balance of +23% of contributors expect rents to move higher over the next three months. For the twelve-month outlook, rents are seen rising by roughly 3% at the UK-wide level.
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