Housing market in England and Wales showing tentative signs of recovery'

"There are tentative signs that the housing market in England and Wales is recovering from a months-long slowdown after uncertainty around the autumn budget and economic pressures, estate agents and surveyors have reported. The Royal Institution of Chartered Surveyors (Rics) said its members were feeling more optimistic about the year ahead than at any time since December 2024, as inquiries from new buyers, agreed sales and house prices became less negative in January."

"A monthly survey of chartered surveyors in England and Wales showed a net balance of 35% of Rics members expect an increase in house sales over the next 12 months. The index measures the difference between the share of agents reporting rising and falling optimism. Demand from new buyers was still down, however, with a net balance of -15% of respondents saying they had seen a further decrease in inquiries in January, but Rics said this figure showed diminished negativity, after a reading of -21% in December and -29% in November. Similarly, the volume of agreed sales improved, with net balance of -9%, which was the least negative reading since June 2025."

"House prices have also reached a potential turning point, the Rics survey said. Although more agents reported falling rather than rising house prices over the past three months, with the house price gauge standing at -10%, this was up from a low of -19% in October. Simon Rubinsohn, the chief economist at Rics, 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."

Surveyed chartered surveyors in England and Wales reported rising optimism, with a net balance of 35% expecting increased house sales over the next 12 months. New-buyer inquiries remain down at a net -15%, but that is less negative than December and November readings. Agreed sales improved to a net -9%, the least negative since June 2025. The house price gauge moved to -10%, up from -19% in October, suggesting a potential turning point. Activity slowed ahead of the autumn budget amid uncertainty over potential changes to stamp duty and capital gains tax on residences.

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