Demand and sales metrics hold steady in May, but conditions remain firmly negative
The UK housing market showed tentative signs of stabilisation in May, with several key indicators holding steady rather than deteriorating further, according to the latest RICS UK Residential Market Survey.
New buyer enquiries recorded a net balance of -34% in May, unchanged from April. Although demand remains weak, it was the first month since January that the headline demand indicator had not worsened. Agreed sales were similarly unchanged, posting a net balance of -37%.
Transactions are, however, taking longer to complete. The average time from listing to completion rose to 21.5 weeks in May — the longest recorded since the dataset began in 2017.
House prices continued to fall at the headline level, with the net balance holding at -35% for the second consecutive month. Downward pressure was most pronounced in the South East and East Anglia, while Northern Ireland continued to record price growth.
Source: RICS UK Residential Market Survey May 2026
Short-term sentiment remained cautious. Near-term sales expectations improved slightly to -25%, compared with -32% and -34% in the previous two surveys. Twelve-month sales expectations moved into neutral territory at +2%. Price expectations remain weak in the near term at -45%, though 12-month expectations edged into positive territory at +6%.
The rental market continued to face strain. Tenant demand rose, with a net balance of +14% of contributors reporting an increase, while landlord instructions remained deeply negative at -28%. Rent expectations climbed to +36% — the highest reading since May last year.
"The latest survey data suggest the recent downturn in activity may be beginning to stabilise, with several key indicators broadly holding steady," said Tarrant Parsons (pictured right), head of market research and analysis at RICS. "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."
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