In January 2025, the RICS UK Residential Survey revealed stable demand and sales levels in the housing market. New buyer enquiries showed a flat trend, continuing a gradual decline from a recent high in August. Despite this, a modest increase in sales volume is expected throughout the year. The survey's agreed sales tracker also indicated a static picture, with near-term sales expectations remaining slightly positive.
New instructions saw an increase, with more listings coming onto the market, continuing a nine-month positive trend. Average inventory levels in estate agent branches improved, although they remain low historically. The number of market appraisals rose, suggesting a strong pipeline for future instructions.
House prices continued to rise, although growth slowed slightly compared to the previous survey. All UK regions experienced some price increases, with Northern Ireland and the North West of England seeing the most significant growth. Price expectations for the next three months have leveled off, but confidence in a 12-month rise remains strong.
In the lettings market, tenant demand was stagnant, and new landlord instructions declined. Although rental price pressure eased slightly, rents are still expected to increase in the near term.
