The UK housing market shifted noticeably into a lower gear in October, according to the latest RICS Residential Survey, with buyer demand, sales activity and new listings all weakening as the Autumn Budget looms. For landlords, the data highlights a familiar imbalance: softening buyer appetite on one side, and stubbornly tight rental supply on the other - a combination that continues to support yields even as the wider market hesitates.
Rent growth outlook contrasts with cooling sales market
RICS recorded new buyer enquiries at -24%, the weakest figure since April and down from September’s -21%. Responses across every region point to a nationwide pause as households wait to see whether the Chancellor introduces new property taxes.
Sales agreed fell to -24%, compared with -17% last month, and the pipeline looks thinner too. New vendor instructions posted their third consecutive negative reading at -20%, the lowest since 2021. Appraisal activity - often a lead indicator for future stock - slipped to -37%, signalling that fewer sellers are preparing to enter the market.
Where does this leave landlords? In a stronger relative position. While tenant demand has flattened (-4%), landlord instructions have plunged to -33%, the weakest result since April 2020. With supply running this thin, even modest rental demand keeps rents firm. In real terms, surveyors still expect rents to rise around 15% in the near term, albeit at a slower pace than the rapid growth of the past four years.
Emma Cox, MD of Real Estate at Shawbrook, warned publicly that falling landlord instructions “could once again put upward pressure on rents as supply remains constrained” - a dynamic long-time investors will recognise well.
Specialist finance for landlords comes into sharper focus
One reason landlords are weathering the cooling market better than buyers is access to specialist finance that isn’t as heavily reliant on household sentiment. Portfolio refinancing, interest-only structures and diversified regional strategies have insulated many professional landlords from the price wobble seen in owner-occupier-focused areas such as London, the South East and East Anglia - all highlighted by RICS as facing the steepest downward pressure (national price balance: -19%).
Agents in prime markets have reported stalled activity above £1m, with some buyers delaying completions until post-Budget clarity. For landlords, these pauses can open acquisition opportunities, particularly where motivated sellers are adjusting expectations.
RICS analyst Tarrant Parsons noted that “uncertainty surrounding potential measures in the upcoming Budget” is weighing heavily on sentiment. His comments mirror what many surveyors describe as a “holding pattern”, where both buyers and sellers are simply unwilling to move until they know how stamp duty, capital gains tax or inheritance tax may change.
Against that backdrop, landlords who locked in longer mortgage fixes in 2020–2022, or who diversified into higher-yielding regions such as the North West or the East Midlands - where rental growth has run 11–13% above five-year averages - appear better positioned than would-be buyers with shrinking affordability.
UK housing market outlook
The survey suggests the market is likely to remain subdued through late 2025, with a meaningful recovery delayed until early 2026 as policy direction becomes clearer. Twelve-month expectations have turned positive again (+16%), reflecting a belief that pent-up activity will return once the Budget is digested.
For landlords, the bigger question is not whether prices soften slightly over winter - that is already factored in - but whether new tax measures tilt the economics of buy-to-let. The Renters’ Rights Act and possible property-related tax rises continue to weigh on confidence, though none of these concerns have translated into rising landlord arrears or forced sales.
Cox offered a reminder that while tenant protections are tightening, “the Government must continue to recognise and support landlords… with the added pressures of higher borrowing costs, capital gains tax, and mortgage rates”. Her comments reflect a growing industry concern: professional landlords remain the backbone of the private rented sector, yet policy often fails to acknowledge this.
Editor’s view
October’s numbers tell a story of caution, not collapse. Buyers have stepped back while landlords - albeit with fewer new instructions - still benefit from a market where rental demand routinely outstrips supply. The coming Budget could reset expectations in either direction, but those who plan early, review their portfolios and secure finance ahead of any policy shift may find themselves best placed for 2026.
Author: Editorial team - UK landlord & buy-to-let news, policy, and finance.
Published: 13 November 2025
Sources: RICS UK Residential Survey October 2025; Shawbrook; ONS rental market data; industry agent commentary.
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