RICS Residential Market Survey February 2025

Key Takeaways

Buyer enquiries and agreed sales soften

The February survey reflects a mild slowdown in the sales market, with weaker buyer demand and sales volumes.
New buyer enquiries posted a net balance of -14%, the weakest since November 2023, influenced by the upcoming stamp duty changes.
Agreed sales registered a net balance of -13%, easing from +2% in January, indicating a reduction in transaction volumes.
Near-term sales expectations dropped to -5%, with a positive outlook for the next 12 months, as 32% of contributors expect an increase in sales volumes.

New instructions show modest growth

New instructions recorded a net balance of +12%, an eighth consecutive month of positive readings, albeit a slight easing from January.
Market appraisals saw a net balance of +16%, indicating continued strength in the pipeline of new listings.

House prices continue rising at a slower pace

The national house price indicator posted a net balance of +11%, reflecting continued growth but at a slower pace compared to previous months.
Near-term price expectations moderated, with a net balance of +47%, suggesting optimism for continued price increases over the next 12 months.
Northern Ireland, Scotland, and the North West reported the strongest price growth, while other regions experienced slower growth.

Rental market

Tenant demand remained slightly negative, with a net balance of -4%, marking the fourth consecutive month of subdued demand.
New landlord instructions recorded a net balance of -22%, continuing the trend of limited rental supply.
Rental price expectations increased, with a net balance of +34% forecasting rents to rise over the next three months.