UK housing market shows signs of stabilization in January 2026, with slowing price declines and improved buyer sentiment.

The UK housing market showed early signs of stabilization in January 2026, with surveyors reporting improved sentiment across buyer inquiries, agreed sales, and house price declines. New buyer inquiries fell less sharply, sales agreements improved, and price declines slowed, with a net balance of -10%—the least negative since June 2025. Expectations for future sales and prices rose to their highest levels since late 2024, driven by reduced fiscal uncertainty after the November budget. While London and southern regions still face affordability issues, Scotland and northern England saw stronger price growth. Rental demand increased, but supply constraints may push rents higher. RICS warned recovery will be gradual, dependent on mortgage rates and economic confidence.