The UK housing market continues to be subdued, with the rental sector facing a lack of supply as some landlords exit the market. The RICS UK Residential Survey for July 2026 indicates that landlord instructions were firmly negative at -27%, with feedback suggesting landlords are reducing portfolios or leaving the rental market.
Despite a broadly flat tenant demand in the three months to July, expectations for rents remain positive. A net balance of +28% of respondents anticipate rents to rise over the next three months.
In the sales market, new buyer enquiries recorded a net balance of -28% in July, consistent with June. Agreed sales also remained unchanged from the previous month at -30%. The national house price balance saw a marginal improvement to -30% from -32% in June.
Regional differences persist, with London, the South East, and South West reporting more negative price balances than the national average. Conversely, Northern Ireland continues to see rising prices, while price momentum in Scotland appears to be flattening.