Housing market remains subdued but pace of decline shows signs of stabilising

UK Residential Survey May 2026

Buyer demand and agreed sales remain in negative territory, while rental pressures continue to build amid constrained landlord supply.

The UK residential market remained challenging in May, although some indicators suggest the recent deterioration may be beginning to stabilise, according to the latest RICS UK Residential Market Survey.

New buyer enquiries recorded a net balance of -34% in May, unchanged from the previous month. While this continues to point to weaker demand, it marks the first time since January that the headline demand indicator has not moved further into negative territory.

Agreed sales also remained subdued, posting an unchanged net balance of -37%. Although this shows that more respondents are still seeing sales fall rather than rise, the unchanged reading suggests the pace of decline is no longer intensifying.

However, transactions are taking longer to complete. The average time from listing to completion rose to 21.5 weeks, the longest duration recorded since the dataset began in 2017.

House prices continued to edge lower at the headline level, with the net balance holding at -35% for the second consecutive month. Respondents in the South East and East Anglia reported more pronounced downward pressure on prices, while Northern Ireland continued to see firm price growth.

Looking ahead, short-term sentiment remains cautious. Near-term sales expectations improved slightly to -25%, compared with readings of -32% and -34% in the previous two reports. Over a 12-month horizon, sales expectations moved into neutral territory at +2%.

Price expectations remain weaker in the near term, with a net balance of -45% expecting prices to fall over the coming three months. However, expectations for the year ahead edged into positive territory at +6%, suggesting some respondents see conditions improving further out.

The rental market remains under pressure. Tenant demand rose, with a net balance of +14% of contributors reporting an increase, while landlord instructions remained firmly negative at -28%. Rent expectations also strengthened, rising to +36%, the highest reading since May last year.

Tarrant Parsons, RICS Head of Market Research and Analysis, said: “The latest survey data suggest the recent downturn in activity may be beginning to stabilise, with several key indicators broadly holding steady. However, as they remain in negative territory, it would be premature to interpret this as the start of a recovery.

“The decline in CPI inflation to 2.8% in April provided some temporary relief, but the Bank of England has signalled that further inflationary pressures are likely as higher energy costs continue to pass through. Against this backdrop, the prospect of further rate rises cannot be dismissed, and until there is greater clarity, market sentiment is likely to remain fragile.”

Comments from RICS members:

“May showed resilience beneath a softening headline. Buyer demand remains genuine across mainstream price points, with serious purchasers continuing to transact. Above £400,000 the market is more selective, and accurate pricing at instruction is proving the single biggest determinant of outcome.” - Tony Dobbins MRICS, Darlington, Anthony Jones Properties

“An obvious standoff in the market where too many vendors are still hanging out for a price which is no longer achievable and available stock is growing. Conversely when new properties come on at an appropriate figure there are available willing buyers.” - Stan Shaw, RICS Registered Valuer, Ham, Between Richmond and Kingston, Surrey, Mervyn Smith.

-ENDS-

Notes for editors: You may download a copy of the UK residential report.

Commentary from survey respondents regionally can be found in the economic pdf on the back pages – you are free to use these.

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