UK House Price Balance Falls to 27-Month Low

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.

The RICS UK Residential Market Survey showed the house price balance rose to -10% in January 2026 from a revised -13% in December, marking a third straight monthly improvement and the strongest reading since June. The outturn also came in above market expectations of -11%, adding to signs of a tentative recovery in the housing market. Regional disparities remain pronounced as Northern Ireland and Scotland continued to report price gains, while respondents in the North West and the North of England indicated that prices are trending higher. In contrast, net balances in London, the South West, the South East and East Anglia remained more negative than the national average, though each region saw a moderation in the pace of decline. Commenting on the data, RICS Chief Economist Simon Rubinsohn said: “There are early signs that market conditions may be improving after a challenging period, although activity levels are still subdued, meaning any recovery is likely to be gradual.”