The housing market is showing “tentative signs that it may be turning a corner”, according to the latest analysis from the Royal Institution of Chartered Surveyors.

In its January residential market survey, Rics says that several key indicators point towards a recovery in sales activity.

While more respondents were still reporting a decrease in new buyer enquiries than those reporting an increase, the net balance improved to -15%, from -21% in December and -29% in November.

Agreed sales followed a similar trend, with the latest net balance of -9%, which is the strongest reading since June last year.

House prices at a national level appear to be stabilising, it says.

The survey found a net balance of -10% of respondents reported falls rather than increases over the past three months, an improvement from a low of -19% in October last year.

Price growth remains strongest in Scotland and Northern Ireland, with upward trends also reported in the North West and North of England.

By contrast, London, the South East, South West and East Anglia continue to lag behind the national average reflecting ongoing affordability challenges it says.

In the lettings market, tenant demand edged upwards in the three months to January after two consecutive quarters of flat or negative readings.

However, supply remains constrained and Rics rents are expected to continue rising.

Rics chief economist Simon Rubinsohn says: “There are early signs that market conditions may be improving after a challenging period, although activity levels are still subdued, meaning any recovery is likely to be gradual.

“While the strengthening twelve-month outlook is encouraging, near-term expectations remain relatively soft, reflecting ongoing economic uncertainty.

“Whether this tentative improvement develops into sustained momentum will depend heavily on the trajectory of mortgage rates and broader macro confidence over the coming months.”

Shawbrook managing director of real estate Emma Cox says: “While property market activity remains subdued, several key indicators have shown a marked improvement, leading the industry to feel more confident about sales activity in 2026.

“New buyer enquiries in particular have shown improvement from last month’s figures, indicating that the appetite from buyers is present and growing – likely helped by the government’s push for building new homes.

“Looking ahead, market recovery is expected to be slow but steady, which will be a welcome relief for property investors who may have held back from expanding their portfolio in recent months.”

North London estate agent and former Rics residential chairman Jeremy Leaf adds: “Buyer enquiries and sales agreed – particularly for smaller houses – have improved considerably since the beginning of the year.”

But this is not so much the case for flats, he says.

Leaf adds: “This consistently-reliable lead indicator of change confirms what we have seen in our offices after a slower than expected few months – confidence is on the up.

“However, an increase in listings as well as appraisals, ongoing worries about the economy and slow pace of anticipated mortgage rate cuts, are keeping transaction lengths up and prices in check.”