Published by Global Banking & Finance Review®
Posted on January 15, 2026
2 min readLast updated: January 19, 2026
Add as preferred source on GoogleUK surveyors are optimistic about the housing market recovery as interest rates are expected to drop and tax uncertainties have cleared.
LONDON, Jan 15 (Reuters) - Britain's housing market showed some signs of turning a corner last month as uncertainty about finance minister Rachel Reeves' tax plans lifted and borrowing costs looked set to come down further, a survey showed on Thursday.
The Royal Institution of Chartered Surveyors said activity remained weak in December but expectations for sales volumes and prices in 2026 rose.
"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," RICS' head of market research and analysis, Tarrant Parsons, said.
Sales expectations for the next three months hit their highest since October 2024 at +22 and optimism about the 12 months ahead more than doubled to +34, the highest since the end of 2024.
RICS linked the improvement in confidence among surveyors to the prospect of further cuts to Bank of England interest rates and to the end of months of speculation about possible tax rises in Reeves' budget on November 26 - when she announced 26 billion pounds ($35 billion) in tax hikes but deferred most of them.
The RICS report also showed:
* December's gauge of house prices held at -14; * November's gauge of house prices was revised up from -16; * new vendor instructions showed a net balance of 0% afterseveral months of decline; * low appraisal activity suggested any big increase in stockwill take time; * tenant demand weakened in December; * new landlord instructions stayed deeply negative.($1 = 0.7437 pounds)
(Writing by William Schomberg; editing by David Milliken)
Interest rates are the cost of borrowing money, expressed as a percentage of the loan amount. They influence mortgage rates and can affect consumer spending and investment.
The Royal Institution of Chartered Surveyors (RICS) is a professional body that regulates and promotes the profession of chartered surveying, providing standards and guidance for property and land professionals.
Sales expectations in real estate refer to the anticipated volume of property sales over a specific period, influenced by market conditions, economic factors, and consumer sentiment.
Buyer enquiry momentum refers to the level of interest and inquiries from potential homebuyers in the market. It is an indicator of demand and market activity.
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