9th July 2026
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, comments on the latest UK Residential Market Survey from Royal Institution of Chartered Surveyors (RICS).
“The supply of homes coming onto the market is beginning to thin, with both new instructions and market appraisals moving deeper into negative territory.
The recent volatility in mortgage pricing and wider geopolitical uncertainty may have prompted some homeowners to pause their plans to sell until the outlook becomes clearer.
Fewer properties coming onto the market could restrict the overall supply of homes in the months ahead. Overall, market sentiment remains subdued, although downward pressure on house prices appears to be easing.
"New buyer enquiries remain weak, yet buyer sentiment has slightly improved, recording its least negative result since February. Falling mortgage rates could encourage prospective buyers, but affordability pressures and wider economic uncertainty can create caution, with some sitting on the fence until rates fall further.
Those seeking a new deal are looking at repayments of £1,538 per month, based on a typical two-year fixed mortgage of 5.52% on a loan of £250,000, with a term of 25 years. This is a difference of around £760 over the course of 12 months, compared to the average rate of 5.09% back in July 2025.
"The rental market continues to face a familiar challenge, with the supply of available homes constrained and tenant demand picking up modestly. Although landlord instructions have improved slightly, they remain firmly in negative territory, so demand continues to outstrip supply.
The imbalance between supply and demand in the rental sector will need to ease to make any significant difference to prospective tenants. Until then, renters may see a continuation of rising rents and fierce competition for available rental properties. Over the next 12 months rental growth is averaging at 2.5% according to RICS."