The RICS UK Residential Market Survey reported that the house price balance declined to -36% in October 2026, down from an upwardly revised -34% in September. This was weaker than the consensus forecast of -32% and marked the lowest reading since November 2023. It also represented a second consecutive monthly deterioration, following tentative signs of stabilization over the summer.
The new buyer enquiries balance was unchanged at -24%, while the agreed sales balance fell to -24% from -18%, its weakest level in three months. The three‑month sales expectations balance slipped to -11%, and the 12‑month sales expectations measure dropped to -17%, its most pessimistic reading since July 2023. Likewise, the 12‑month house price expectations balance fell to -17% from 0, indicating expectations of a modest decline in prices.
According to RICS, rising mortgage rates, together with geopolitical developments and volatility in energy markets, are weighing on the sales outlook. By contrast, the rental market showed more resilience: tenant demand rose to +7% from -1%, and rent growth expectations increased to +41% from +29%, the highest level since early 2024.
