RICS residential survey: UK housing market slows down

The housing market is sensitive to wider economic conditions, and events far beyond the UK's borders can have a very real bearing on buyers and sellers at home.

The conflict in the Middle East, ongoing peace talks and the blockade of the Strait of Hormuz have together contributed to disruption in global oil supply, adding to the economic unpredictability facing many countries. The International Monetary Fund (IMF) indicated at the time that the UK was likely to be among the hardest hit of the G7 economies, with no clear resolution in sight.

This is the backdrop against which the Royal Institution of Chartered Surveyors (RICS) published its UK Residential Report for March 2026, which found a marked loss of momentum in the housing market as rising borrowing costs and geopolitical uncertainty combined to weigh on buyer confidence and sales activity.

New buyer enquiries fell to a net balance of -39% in March, down from -29% in February and the weakest reading since August 2023. Agreed sales dropped sharply too, from -13% in February to -34% in March. These are net balance figures, reflecting the difference between the proportion of RICS members reporting increases versus decreases — not direct percentage changes in volume or price.

House prices also softened, with the net balance moving from -10% in January and -14% in February to -23% in March. Scotland and Northern Ireland continued to register house price growth during this period, but conditions were notably weaker across the south-eastern regions. East Anglia, London and the South-East, along with the South-West, all posted average house price readings below the national net balance figure.

In summary, the report describes a market that has "moved on to a softer footing, with affordability pressures, higher financing costs, and global instability" dampening appetite to buy or sell. RICS was careful to note, however, that the data was not signalling a structural downturn rather, the optimism felt earlier in the year had largely dissipated by March.

As Tarrant Parsons, RICS Head of Market Research and Analysis, said of the findings:

"The mood across the UK housing market has shifted markedly over the past couple of months.

What had been a cautiously improving picture for activity has been knocked off course by the wider macro fallout from the Middle East conflict, as the renewed deterioration in the mortgage rate outlook has proved particularly challenging.

Indeed, with average fixed rates climbing back above 5% according to some sources, it is unsurprising that buyer demand has softened.

The path ahead hinges on whether or not recent surges in oil and energy costs begin to reverse in what remains a highly uncertain geopolitical environment."

Commenting on the report, Christopher Clark FRICS at Ely Langley Greig said:

"It's impossible to know what is happening to the residential market at the moment.

Only time will tell whether the Middle East conflict escalates or reaches a resolution, and the outcome of that war will determine how the market performs in the months and possibly years to come."

Trevor Brown FRICS, of Trevor Brown Surveyors, added:

"Entering what has traditionally been the strongest buying/selling months the market remains sluggish.

Most of our (survey) clients are 'have to move' not 'want to move'.

National and international uncertainty remains and prices are stagnant. Sales volumes are reported to be low."

In a market like this, it is all the more important for buyers to understand exactly what they are taking on. A professional property survey gives you a clear picture of the condition of a property and the likely costs of any remedial work before you commit.

Surveyor Local connects you with chartered surveyors across the UK, all of whom are members of RICS, ensuring your survey is always professionally delivered. Call our friendly team on for a no-obligation quote, or use our quick quote generator.