UK Property Market Stalls: What’s Holding It Back?

UK Housing Market: Stuck in Neutral as Budget Uncertainty Looms

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The latest RICS Residential Market Survey for September 2025 confirms what many in the property sector have been feeling: the UK housing market is struggling to gain momentum. With buyer interest, agreed sales, and new listings all in decline, the outlook remains cautious as the country braces for the upcoming Autumn Budget.

📉 Buyer Demand and Sales Activity Slipping

For the third consecutive month, new buyer enquiries fell, landing at a net balance of -19%, a further dip from August’s already negative reading. Agreed sales also remained weak, posting a -16% balance, which, while slightly better than August’s -24%, still signals a sluggish market.

Surveyors report that this downward trend is now firmly entrenched, with most regions seeing reduced activity. The near-term and 12-month sales expectations both sit at -9%, suggesting little hope for a quick turnaround.

🏠 House Prices: Modest Declines with Regional Gaps

Nationally, house prices continue to drift downward, with a -15% balance indicating modest declines. The South East and East Anglia are seeing the steepest drops, at -43% and -38% respectively. In contrast, Scotland and Northern Ireland remain resilient, still reporting price growth.

Short-term price expectations are even more pessimistic, with a -21% balance, but there’s a glimmer of optimism: 12% of respondents expect prices to rise over the next year, hinting at potential recovery in 2026.

🧾 Listings and Appraisals: Supply Slows Down

New vendor instructions fell for the second month in a row, also at -15%, ending a 13-month streak of positive readings. Market appraisals dropped sharply to -24%, suggesting fewer homes will be listed in the near future.

🏘️ Rental Market: Tight Supply, Rising Rents

While tenant demand held steady (-1%), landlord instructions plunged to -38%, the lowest since May 2020. This imbalance is expected to push rents up by around 3% over the next year, with some surveyors projecting even steeper increases.

⚖️ Budget Anxiety Dampens Confidence

A major factor weighing on the market is uncertainty around the November Budget. Many expect new property-related taxes, which is causing both buyers and sellers to hesitate. Some are holding off in hopes of incentives—especially first-time buyers affected by the recent removal of stamp duty exemptions.

Conclusion: The UK housing market is in a holding pattern, with subdued activity likely to

persist until at least early 2026. While some regions show resilience and long-term price expectations remain mildly positive, short-term sentiment is cautious. All eyes are now on the Autumn Budget, which could either deepen the slowdown or spark a much-needed revival.