House prices stayed subdued in December, but surveyors are optimistic about the year ahead, according to the Royal Institution of Chartered Surveyors (RICS).
The latest RICS residential market survey showed that the house price balance was -14 in December 2025, the same as November.
The net balance is the proportion of survey respondents that report a rise versus those reporting a fall.
The new buyer enquiries balance improved to -24 in December from -30 in November.
Agreed sales were at -19, the same as November.
Looking to the future, RICS members were more optimistic about the property market’s future.
The sales expectation balance for the next three months rose to 22, the highest since October 2024, while the 12-month balance was 34.
The survey said: “The December 2025 RICS UK residential market survey reveals that market activity remains subdued, with both buyer demand and agreed sales continuing to register negative readings.
“However, there are encouraging signs of a shift in sentiment, as respondents express greater optimism around the outlook for sales, both over the near-term and for the year ahead.
“This improved confidence appears to be underpinned by expectations of further monetary policy easing, alongside the removal of Budget-related uncertainty which had weighed on the market in recent months.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Falls in interest rates and inflation may have arrived too late last month to have much impact on activity.
“However, market activity has certainly perked up in our offices since confirmed in this historically-reliable lead indicator report. A two-tier market is developing with more interest in smaller two and three-bedroom houses where prices are hardening rather than larger, more expensive homes likely to be affected by the new Mansion Tax.
“Conversely, an over-supply and worries about outgoings for flats is reducing demand so values of many are also softening. Continuing uncertainties, particularly about the economy and closer-to-home unemployment prospects, are still influencing decision-making too.”
