UK housing downturn eases as January RICS balance improves
Summary:
UK January RICS house price balance rises to -10 from revised -13.
Beat Reuters poll expectation of -11.
New buyer enquiries improve to highest since July.
12-month sales expectations jump to strongest since Dec 2024.
Early signs of stabilisation, though activity remains subdued.
Britain’s housing market showed further signs of stabilising in January, with the latest survey from the Royal Institution of Chartered Surveyors suggesting the downturn is gradually easing.
The RICS house price balance — which measures the net percentage of surveyors reporting price increases rather than declines — improved to -10% in January, up from a revised -13% in December. The reading was slightly stronger than the -11% expected in a Reuters poll and marked the least negative result since June. Although the index remains below zero, indicating that more surveyors still report falling prices than rising ones, the improvement points to a moderation in the pace of declines.
Demand indicators also firmed. The gauge of new buyer enquiries rose to -15% from -21%, the highest level since July. While activity remains subdued in absolute terms, the direction of travel suggests buyer interest is beginning to recover after a prolonged period of weakness driven by higher mortgage rates and affordability pressures.
Forward-looking measures were more encouraging. RICS’ indicator for sales expectations over the next 12 months climbed to its strongest level since December 2024, signalling improving sentiment among property professionals about the year ahead.
The survey follows recent reports from mortgage lenders including Nationwide Building Society and Halifax, which both recorded modest monthly house price gains. Analysts have attributed the tentative improvement to easing fiscal uncertainty following Chancellor Rachel Reeves’ late-November budget, alongside broader signs of economic stabilisation in early 2026.
Even so, RICS cautioned that activity levels remain relatively low and that any recovery is likely to be gradual rather than sharp, with affordability constraints and interest rate expectations continuing to shape the outlook.
This article was written by Eamonn Sheridan at investinglive.com.