The housing market in England and Wales is showing tentative signs of improvement after months of slowdown linked to economic uncertainty and pre-budget caution, according to a new survey of property professionals.
A monthly poll of chartered surveyors found growing optimism about the year ahead. A net balance of 35% of respondents expect house sales to rise over the next 12 months — the strongest confidence level in over a year.
Although buyer demand remains subdued, the decline is easing. A net balance of -15% of surveyors reported a drop in new buyer inquiries in January, an improvement from steeper declines in previous months. Agreed sales also showed signs of stabilizing, with a net balance of -9%, marking the least negative reading since mid-2025.
House prices may be nearing a turning point. While more surveyors still reported falling prices than rising ones over the past three months, the negative balance improved to -10%, up from -19% in October.
Market activity had slowed significantly in the run-up to the autumn budget amid speculation over potential tax changes affecting property transactions. Although anticipated reforms to stamp duty and capital gains tax were not introduced, uncertainty weighed on buyer confidence.
Developers have also reported softer trading conditions. Barratt Redrow recorded a 13.6% drop in underlying pre-tax profits to £199.9 million for the six months to December, citing low consumer confidence and affordability pressures. The company completed 7,444 homes during the period and expects between 17,200 and 17,800 completions for the full year.
Bellway similarly noted that demand was affected by budget uncertainty, though it reported a modest 2.7% rise in completions to 4,702 homes in the six months to January.
Industry experts caution that any sustained recovery will depend largely on mortgage rate movements and broader economic confidence in the months ahead.
