British surveyors are becoming increasingly optimistic about the outlook for the real estate market.

A survey released on Thursday showed several signs of stabilization and recovery in the UK housing market last month as uncertainty surrounding Chancellor Rachel Reeves' tax plans dissipated and borrowing costs are expected to further decrease. The Royal Institution of Chartered Surveyors (RICS) stated that while market activity remained subdued in December, expectations for both sales volumes and prices in 2026 have improved among practitioners. Tarrant Parsons, director of market research and analysis at RICS, said: "The UK residential market is still in a long-term slump, with December data showing a sixth consecutive month of declining buyer inquiries. However, there are initial signs of a shift in market sentiment." The index for the expected sales in the next three months rose to +22, the highest since October 2024; the market optimism index for the next twelve months doubled to +34, also reaching a peak since the end of 2024. RICS attributes the rebound in surveyor confidence to the potential further rate cuts by the Bank of England as well as the resolution of the speculation on tax hikes for several months Reeves announced an increase of 26 billion in taxes in the fiscal budget released on November 26, but most of the tax policies were postponed. The survey report by RICS also revealed key data points such as the house price index remaining at -14 in December, an improvement from -16 in November; and the net balance of new listings rebounding to 0% after several months of consecutive decline.