Confidence weakened in February, with the RICS UK Residential Market Survey blaming geopolitical and macroeconomic uncertainty.
There are also concerns over inflation and interest rates.
New buyer enquiries worsened by a net -26%, worse than a net -15% in January.
Tarrant Parsons, RICS head of market research & analytics, said: “February’s survey highlights renewed volatility in the market.
“While activity indicators at the start of the year suggested a tentative improvement, the deterioration in the geopolitical backdrop has clearly weighed on confidence.
“The recent rise in oil and energy prices has also increased the likelihood that mortgage rates will remain higher for longer. As a result, near-term expectations have softened.
“Although the 12-month outlook remains positive overall, maintaining that trajectory will depend on the recent spike in inflationary pressures easing in the months ahead.”
Agreed sales were also subdued, with a net balance of -12%, while near-term sales expectations softened to -2%.
People are more positive looking further into the future, as a net +17% expected sales activity to rise over the next 12 months.
Regional divergence remains pronounced.
London (-40%), the South East (-24%) and East Anglia (-26%) are seeing the most downward pressure on sales, while Northern Ireland, Scotland and the North West of England are still reporting firmer price trends.
Tim Green FRICS of Green & Co.(Oxford) Ltd, said: “The best early sign of activity in 2026 is the increased number of properties coming to the market.
“The recovery is likely to be led from the first-time buyer range, but despite a few green shoots, Spring has not quite arrived yet.”
