15th Jan 2026 03:21
(Alliance News) - The UK housing market remained soft in December although confidence is returning as expectations for sales and prices improve, an industry association reported Thursday.
According to the latest UK residential market survey from the Royal Institution of Chartered Surveyors, there was continued downward pressure on UK house prices.
The net balance, which represents the proportion of survey respondents reporting an increase in prices minus those reporting a fall, stood at minus 14% in December from minus 16% in November.
The consensus forecast from FXStreet had expected no change in December from the prior month.
Sales expectations over the next three month surged to plus 22% in December from a net balance of minus 6% in November. The 12-month sales outlook improved to a net balance of plus 34% in December from plus 15% in November.
Rics said 35% of those surveyed now expect house prices to rise over the next year, reflecting the most positive outlook recorded since late 2024.
Tarrant Parsons, Rics head of market research and analysis, said: "The UK residential market remains in a prolonged soft patch, with December's survey recording a sixth consecutive month of negative momentum in buyer enquiries. That said, there are tentative signs of a shift in sentiment beneath the surface.
"Near-term sales expectations have strengthened, and the twelve-month outlook has edged into more positive territory. The key test for 2026 will be whether borrowing costs ease on a sustained basis. If so, this could provide the catalyst needed to drive a recovery in buyer demand."
By Elijah Dale, Alliance News senior reporter Asia-Pacific
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