UK Housing Market: A Glimmer of Hope Amidst Challenges

The UK housing market is showing small signs of improvement after a long period of uncertainty. Surveyors are now feeling more positive about the future, due to a few key factors.

Key Factors Driving Improvement

1. Clarity in Tax Plans

• The finance minister's tax plans are now clearer.
• There was a lot of worry about possible tax increases.
• Most of these have been delayed, easing some of the pressure on the market.

2. Expected Drop in Borrowing Costs

• The Bank of England has been cutting interest rates.
• This makes it cheaper for people to borrow money.
• Good news for those looking to buy a home.

Current Market Conditions

• The market is still weak.
• December saw a sixth straight month of fewer buyer enquiries.
• Shows that the market is still struggling.

Hope for the Future

• Surveyors are more optimistic about sales and prices in 2026.
• This is a big change from the past few months.

RICS Report Highlights

• Sales expectations for the next three months hit a high.
• Highest since October 2024.
• Optimism about the next 12 months has also doubled.

Reasons for Improved Confidence

• Prospect of further interest rate cuts.
• Clarity around tax plans.

Important Note

• The market is still in a tough spot.
• It will take time for things to improve.
• But the signs are encouraging.