UK House Price Balance Below Forecasts

The RICS UK Residential Market Survey showed that the house price balance fell to -34% in April 2026 from a downwardly revised -25% in March, marking the weakest reading since November 2023 and coming in below market expectations of -25%. Regionally, London, the South East, East Anglia, and the South West of England all registered negative net balance readings. Conversely, the North West and the North of England continue to post marginally positive readings for the time being. Looking ahead, the near-term house price expectations index rose to a net balance of -38% in April at the UK-wide level, from -45% in March, indicating that downward pressure on prices is likely to ease over the next three months. “The recent warning from the Bank of England that interest rate rises may be required to tackle renewed inflation, driven by elevated oil prices and disrupted supply chains, underlines the challenging environment facing buyers,” said Tarrant Parsons, RICS’ head of research analysis.

The RICS UK Residential Market Survey showed the house price balance declined to -23% in March 2026 from -14% in January, marking the weakest reading since December 2023 and coming in below market expectations of -18%. This suggests renewed, though still relatively modest, downward pressure on prices. Regionally, London, East Anglia, and the South East and South West of England all posted more negative net balance readings compared to the national average. In contrast, respondents in Northern Ireland and Scotland continued to report price growth. Looking ahead, the near-term house price expectations index dropped to a net balance of -43% in March at the UK-wide level, down sharply from -19% in the previous month, indicating that downward pressure on prices is likely to intensify over the next three months.

The RICS UK Residential Market Survey showed the house price balance fell to -12% in February 2026 from -10% in January, marking the first decline in four months and missing market expectations for an improvement to -9%. Respondents in London (-40%), the South East (-24%), and East Anglia (-26%) reported greater downward pressure compared with the national average. In contrast, Northern Ireland and Scotland continue to see rising prices, while the North West of England is also experiencing gains. Looking ahead, near-term headline price expectations returned to negative territory, with the aggregate net balance dropping to -18% from -6%. Over the next twelve months, a net balance of +33% of contributors expect house prices to edge higher, though this is down from +43% last month. The shift in sentiment is particularly notable in London, where the twelve-month expectations net balance has flattened sharply to +7% from +56% previously.