UK House Price Balance Improves to 5-Month High

The RICS UK Residential Market Survey showed that the house price balance improved to -28% in August 2026 from an upwardly revised -29% in July, reaching a five-month high as the housing market showed signs of stabilizing. The net balance for new buyer enquiries rose to -19%, its strongest reading since January, while the sales expectations balance improved to -3% from -13%. RICS said key activity indicators have become progressively less negative, although any recovery remains fragile. Property prices are still expected to fall over the next three months but stabilize over a 12-month horizon. London reported the weakest price balance, while Northern Ireland remained the strongest. In the rental market, stronger tenant demand and fewer properties from landlords pushed the three-month rent expectations balance to +44% from +33%. RICS warned that higher interest rates or heavier property taxation after October’s budget could weigh on prices.

The RICS UK Residential Market Survey showed that the house price balance edged up to -30% in July 2026 from -32% in June, remaining firmly negative as buyer demand and agreed sales continued to struggle for momentum. New buyer enquiries and agreed sales were both unchanged from June, at -28% and -30%, respectively, pointing to limited improvement in market activity. New vendor instructions improved sharply to -4% from -23%, although the pipeline of new listings remained constrained. London, the South East and South West continued to report the weakest price balances, while Northern Ireland remained an outperformer. Looking ahead, three-month price expectations stayed weak at -31%, while the 12-month outlook turned slightly positive at +4%. Sales expectations also improved, with the 12-month balance rising to +3%. In the rental market, landlord instructions remained weak at -27%, keeping supply constrained, while 28% of respondents expected rents to rise over the next three months.

The RICS UK Residential Market Survey showed that the house price balance edged up to -33% in June 2026 from -34% in May, pointing to only tentative signs of improvement despite the recent easing in global geopolitical tensions and the decline in oil prices. New buyer enquiries rose to -29% from -34%, the least negative reading since February, while the agreed sales balance improved to -32% from -35%, pointing to a gradual easing in market weakness. Meanwhile, new instructions to sell fell sharply to -23% from -10%, marking the weakest reading in over a year and signaling a tighter supply pipeline. Regionally, the South East and South West remained under the greatest price pressure, while Northern Ireland and Scotland continued to outperform. Looking ahead, the three-month house price expectations index improved to -32% from -44%, while the 12-month outlook turned slightly more optimistic at +8%, reflecting modest price growth over the coming year.