The latest RICS UK Residential Market Survey for October 2025 reveals a notable cooling across the UK’s housing market, with buyer demand, sales activity and new instructions all falling further into negative territory. Survey respondents strongly attribute the slowdown to mounting uncertainty ahead of the forthcoming Autumn Budget and potential tax-raising measures.

New buyer enquiries recorded a net balance of -24%, down from -21% in September and the weakest reading since April. The decline was broad-based across regions, suggesting a nationwide pullback as households delay decisions until post-Budget clarity is available.

Agreed sales remained subdued with a net balance of -24%, slipping from last month’s -17%. While near-term sales expectations remain broadly flat, surveyors expect mild improvement over the next year, with a net balance of +7% anticipating increased activity in 2026.

New vendor instructions posted their third consecutive negative reading at -20%, the weakest since 2021. Appraisal activity - a lead indicator for future stock – softened to -37%, implying fewer listings as potential sellers adopt a “wait-and-see” approach.

The national price balance stands at -19%, consistent with the modest declines seen in recent months. Downward pressure is particularly pronounced in London, the South East, and East Anglia.

Over the next three months, prices are expected to soften slightly (net balance -12%), although 12-month expectations are back in positive territory (+16%), indicating confidence in a medium-term recovery once policy direction stabilises.

Tenant demand has flattened to a -4% net balance; however, landlord instructions continue to fall (-33%), reaching their weakest result since April 2020.

While rents are still projected to rise modestly in the near term (+15%), expectations have cooled compared with the strong growth seen over the past four years. Surveyors highlight concern over the implementation of the Renters’ Rights Act and potential tax rises impacting landlord confidence.

Comments from surveyors across all regions reference a “holding pattern” as the market waits for clarity from the government. Many cite fears of increased property-related taxation, including possible changes to stamp duty, capital gains, and inheritance tax. Higher-end and London properties appear especially sensitive, with multiple agents reporting stalled activity above £1 million.

The report indicates that the market is likely to remain subdued through the remainder of 2025, with any meaningful recovery deferred until early 2026, once the impact of the Budget is fully understood and seasonal conditions improve.

The housing market continued to show weakness in October, with activity levels drifting lower amid a lack of buyer confidence. Ongoing uncertainty surrounding potential measures in the upcoming Budget are thought to be compounding the cautious mood among both buyers and sellers, while above target inflation and rising unemployment are also a negative for the market.

The coming months will be crucial in assessing how the market responds to the Budget, which could prove a turning point in either direction. Greater clarity over housing taxation policy may help stabilise sentiment, but if the measures announced add further pressure to activity, they risk deepening the current slowdown.