RICS’ Aug 2025 survey shows buyer demand and agreed sales fell on balance, prices softened, and rental supply tightened as landlord instructions dropped. Here’s our summary of the latest RICS UK Residential Market Survey for August 2025, plus what it means for sellers, buyers, landlords and renters. Helpful reads: Building Cost Estimator – UK, Decoding the Maze of Estimating Building Costs in the UK, and UK builder day rates and labour costs.

Executive Answer

RICS respondents report a cooling sales market in August: new buyer enquiries net balance fell to -17%, agreed sales to -24%, and the headline house price gauge to -19%. Near-term price expectations are slightly negative, while 12-month expectations are marginally positive. In lettings, tenant demand was broadly flat (+5%) but landlord instructions dropped sharply (-37%, weakest since April 2020), with rents still expected to rise in the near term. Region: UK; headline balances cover England & Wales. Scope: Residential sales and lettings sentiment (net balances). Base date: August 2025. VAT stance: Not applicable to sentiment metrics.

Region: UK (headline balances: England & Wales; additional coverage: Scotland & Northern Ireland)

Base date: August 2025

Last updated: 6 October 2025

Table of Contents

• Key Takeaways (1-minute read)
• Sales Market: Demand, Supply, Prices
• Lettings Market: Demand, Supply, Rents
• Regional Notes
• What This Means for Sellers, Buyers, Landlords and Renters
• Method & Jargon: What is a “net balance”?
• FAQs
• Sources

Key Takeaways (1-minute read)

• Buyer demand slipped: new enquiries net balance down to -17% (Jul: -7%).
• Agreed sales fell further: net balance at -24% (Jul: -17%).
• Prices eased overall: headline price balance -19%; East Anglia -64%, South West -46%; Northern Ireland still rising.
• Instructions flattened: new vendor instructions -3% (first sub-zero since Jun 2024).
• Short-term outlook: prices seen edging down next 3 months (-20%); 12-month price expectations just positive (+9%).
• Lettings squeeze: tenant demand +5%, landlord instructions -37% (weakest since Apr 2020); rents expected to rise next 3 months (+27%) and by about 3% over 12 months (national).

Sales Market: Demand, Supply, Prices

Demand: The net balance for new buyer enquiries deteriorated to -17%, signalling that more agents saw a fall rather than a rise in demand.

Sales volumes: Agreed sales fell further with a -24% net balance. Respondents expect broadly flat sales over the next three months (-2%) and a largely stagnant picture over 12 months (+1%).

Supply: New vendor instructions slipped to -3%, the first sub-zero reading since June 2024, and market appraisals softened to -7% versus a year earlier.

Prices: The headline house price net balance moved down to -19%. East Anglia and the South West saw larger falls (net balances -64% and -46% respectively), while Northern Ireland remained positive. Near-term price expectations are -20%, with 12-month expectations at +9%.

Lettings Market: Demand, Supply, Rents

Tenant demand: broadly steady at +5% on the monthly lettings dataset.

Landlord instructions: fell sharply to -37% the weakest since April 2020, indicating fewer new rental listings.

Rents: near-term rent expectations posted +27%, with respondents pencilling in around 3% growth nationally over 12 months.

Regional Notes

• East Anglia & South West: more pronounced price declines than the national balance.
• Northern Ireland: prices still rising on balance, bucking the wider UK trend.
• Headline coverage: national (England & Wales) balances are regionally weighted; Scotland and Northern Ireland are collected but excluded from the headline aggregates.

What This Means for Sellers, Buyers, Landlords and Renters

Sellers

With buyer enquiries and agreed sales weaker, pricing realistically and preparing for longer marketing periods will help maintain momentum. Pre-empt common queries with recent comparables and a clear chain status.

Buyers

Broader softness can improve negotiation leverage, especially on over-optimistic asking prices. However, thin new instructions mean the best-in-class homes still attract competition: move fast on sensibly priced stock.

Landlords

Stock is tightening while demand holds, underpinning rents in the near term. Factor potential legislative changes and maintenance inflation into your yield model and cashflow buffers.

Renters

Expect firm rents into autumn if local supply remains tight. Strengthen applications with documentation ready and realistic move-in timings.

Method & Jargon: What is a “net balance”?

RICS net balance = percentage reporting a rise minus percentage reporting a fall. It measures the breadth of change (how widespread), not the magnitude. Balances range from -100 to +100; some series are seasonally adjusted. August 2025 results cover 233 responses across 537 branches.

FAQs

Are prices falling everywhere?

No. The national balance is negative, but regions differ. East Anglia and the South West show larger falls, while Northern Ireland remains positive.

Will sales pick up soon?

Respondents expect sales to be broadly flat over the next three months and near-flat over 12 months on balance.

Why are rents still rising if demand is flat?

Because landlord instructions are falling on balance, tightening available stock and supporting rents in the near term.

What should I watch next?

Vendor instructions, buyer enquiries and mortgage rate moves. Also keep an eye on regional balances to spot local turning points.

Sources

• RICS — UK Residential Market Survey, August 2025.
• RICS Economics overview: rics.org/economics