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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.

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