Confidence in the UK housing market is showing signs of rebounding, according to new research from the Royal Institute of Chartered Surveyors (RICS).
Although buyer demand and agreed sales demand remained in negative territory in December, at -24% and -19% respectively, both measures improved slightly from November.
Forward-looking sentiment was a standout indicator, with sales expectations over the next three months rising to 22%.
This is the strongest reading since October 2024.
Looking twelve months ahead, optimism strengthened further, with a net balance of 34% of respondents expecting sales volumes to rise — more than double the level in November.
Supply conditions also stabilised as new vendor instructions flattened to a net balance of 0%, ending several months of decline.
While this suggests the market has stopped deteriorating, according to RICS low appraisal activity indicates that any meaningful increase in stock will take time to materialise.
“There are tentative signs of a shift in sentiment beneath the surface,” said Tarrant Parsons, head of market research and analysis at RICS.
“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.”
