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The UK housing market remained subdued during July 2026, with buyers continuing to act cautiously and properties taking longer to sell where asking prices are unrealistic.
However, the picture is not the same everywhere. Essex appears steadier than London and some parts of the South East, while realistically priced and well-presented homes continue to attract committed buyers.
Buyer demand remains subdued
The latest RICS UK Residential Market Survey, published on 13 August 2026, found that buyer enquiries and agreed sales remained below normal levels during July.
The survey reported:
- New buyer enquiries at a net balance of –28%.
- Agreed sales at a net balance of –30%.
- House prices at a national net balance of –30%.
- Short-term price expectations remaining negative.
- A small improvement in expectations for sales over the next 12 months.
These figures do not mean that house prices or sales have fallen by 30%. A net balance measures whether more surveyors reported a decrease than an increase. It is an indication of the direction and breadth of market sentiment rather than the exact percentage change in property values.
Overall, the figures suggest that the market may be beginning to stabilise, but there is not yet evidence of a strong recovery.
What is happening in Essex?
The local picture is more encouraging than some of the national headlines suggest.
Feedback included in the RICS report described the Essex sales market as steady but highly price-sensitive. Realistically priced properties continued to attract interest, while overpriced homes generally took longer to find buyers.
Property values in Essex were reported to have increased during the latest month but remained broadly flat when viewed over the previous 12 months.
This means buyers should not assume that every property has fallen in value. The condition, location, asking price and level of local demand remain extremely important.
In neighbouring Suffolk, the Ipswich market was described as continuing to move, despite the usual summer slowdown. Feedback from Kent was weaker, with some properties reportedly struggling to generate viewings even after reductions in asking prices.
London and the South East remain challenging
London and the wider South East recorded more negative price sentiment than the national average.
London’s expectations for house prices over the following 12 months also weakened during July. Flats may be particularly affected by affordability concerns, increasing service charges and the amount of similar property available for sale.
This can create opportunities for buyers, but it is still important to investigate why a property has been reduced and whether significant repairs, leasehold liabilities or service-charge commitments are involved.
A lower purchase price does not necessarily represent good value if the property requires substantial expenditure after completion.
Buyers may have more negotiating power
In a price-sensitive market, the findings of a professional home survey can become particularly important.
Defects such as deteriorated roofs, dampness, outdated services, structural alterations, defective drainage or poorly completed extensions may affect both the amount a buyer is prepared to pay and their willingness to proceed.
A survey should not simply provide a list of defects. It should help the buyer understand:
- Which defects require urgent attention.
- Which items are part of normal maintenance.
- Where specialist investigations are justified.
- What questions should be raised with the conveyancer.
- Which repairs may involve significant expenditure.
- Whether the property remains a sensible purchase overall.
Where material defects are discovered, buyers may be able to request repairs, obtain specialist quotations or renegotiate the purchase price. Any renegotiation should be based on credible evidence rather than automatically deducting the full cost of every maintenance item.
The rental market remains under pressure
The RICS survey also identified a continuing shortage of rental properties.
Landlord instructions remained firmly negative, while rents were expected to continue rising. Local feedback suggested that tenant demand was still exceeding supply in Essex and Hertfordshire, with some landlords reducing their portfolios or leaving the market.
Buy-to-let purchasers should therefore consider more than the anticipated monthly rent. A detailed assessment should also take account of:
- Immediate and future repair costs.
- Damp, mould and ventilation risks.
- Electrical, gas and fire-safety concerns.
- Energy efficiency and insulation.
- Roof and drainage condition.
- Legal and regulatory obligations.
- The suitability of the property for continued letting.
Strong rental demand does not remove the need for careful due diligence.
Should buyers still arrange a survey?
Yes. A slower or more price-sensitive market can make a survey even more valuable.
Buyers may have more time to consider the findings and potentially greater scope to renegotiate when significant problems are identified. A detailed survey can also provide reassurance where the property is generally sound and help the buyer plan future maintenance and expenditure.
A Level 2 Home Survey will usually be suitable for a conventional property of standard construction that appears to be in reasonable condition.
A Level 3 Building Survey is normally more appropriate for an older, substantially altered, extended, unusual or visibly deteriorated property, or where the buyer is planning major works.
Independent advice for your property purchase
Every property and every local market is different. National headlines should never replace property-specific advice.
At Ashton Lee Surveyors, we provide detailed Level 2 and Level 3 surveys throughout Essex, London, Hertfordshire and parts of Kent and Suffolk. Our reports include extensive photographs, clear explanations and practical recommendations to help you make an informed decision.
If you are purchasing a property and would like advice on the most suitable survey, please contact Ashton Lee Surveyors or request a quotation through our website.
Market information is based on the RICS UK Residential Market Survey for July 2026, published on 13 August 2026. Market conditions can change and individual properties may perform differently from wider regional trends.
