UK Housing Market Shows Short-Term Weakness Amid Economic Uncertainty

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The February 2026 RICS UK Residential Market Survey shows that the housing market is currently fragile, mainly due to economic uncertainty and rising geopolitical tensions, particularly the conflict in the Middle East.

Buyer demand has recently weakened, with fewer new enquiries from potential buyers. As a result, agreed property sales remain low. The number of new properties coming onto the market has stayed fairly stable, but overall house prices are flat or slightly falling.

Price trends vary by region. London, the South East, and East Anglia are experiencing the strongest downward pressure on prices. In contrast, house prices are still rising in Northern Ireland, Scotland, and the North West of England.



Short-term expectations for the market are cautious. Surveyors expect sales and house prices to remain weak in the near future. However, the outlook over the next year is more positive, with many expecting sales to increase and house prices to rise slightly.

The rental market is facing a major imbalance between supply and demand. Tenant demand remains steady, but the number of rental properties available is falling because many landlords are leaving the market. This is partly due to upcoming regulations under the Renters' Rights Act. As landlords sell their properties, the supply of rental homes continues to shrink, which is expected to push rents higher in the coming months.
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