“So, what’s the state of the market?”

The big question. The questioner doesn’t really normally want to hear “well, it depends on which area/sector/property type”. So, we have our stock reply that allows the conversation to move on, hopefully. However, I’m sure Property Chronicle readers want and expect a bit more so here we go, this is what I have learnt from our recent RICS sentiment survey.

The headline is that 2025 looks as if it might be flat and 2026 could be the year when macro factors really start to have an impact growth in UK property markets.

Those Macro factors would include liquidity returning with credit starting to free up, the interest rate cycle turning and a swing towards the return to the office, more of which to come. As always, there are nuances. For example, the office market is increasingly polarised between prime and secondary.

Old office blocks are being examined, and big decisions are being taken, such as whether to retrofit or knock down?

Globally, the Middle east and Africa is leading the growth table, with Europe and the USA lagging and APAC further back still.

What about the UK?

Firstly, the good news. The proposals to deregulate planning will make a real difference to UK GDP growth, however the time for talk and promises is over and we now need to see these reforms bite.

Confidence was dented by the recent Budget, but this can be restored provided the promised planning reforms are delivered. If local authorities are allowed to get on and build, without getting tied up in red tape, things can turn very quickly.

In particular, smaller initiatives need to get the green light to get things moving. The devil is in the detail, and it is these, more than the big headline projects like Heathrow and the Oxford-Cambridge corridor, that will turn the growth dial quickly and decisively.

If these reforms remain only hopes and aspirations, rather than tangible actions, then confidence could dip.

The UK as an investment destination

In my capacity as CEO of RICS I hear what international investors think of the UK as a place to invest into real estate and real assets. In many ways we have tremendous relative advantages.

We have a liquid, orderly and, most important of all, trusted marketplace where valuations are honest and transparent and the rule of law unquestioned.

But our planning process, and the byzantine appeals procedures, are a headwind for investors. If you have to assume delays and, possibly, big changes to initial planning applications then projected returns become difficult to forecast.

So, our firm message to the UK government is that the planning reforms WILL stimulate domestic growth, investment and jobs. It will also make the UK an even more attractive place for international capital to come and build.

Not all regulation is bad

Having just banged the drum for the removal of red tape I hope Property Chronicle readers will not think I am not contradicting myself when I say that not all regulation is bad for growth. One area where I feel some modest extra regulation would help encourage further investment is the residential market.

Raising the qualifications – and regulating to improve the product and service – of estate agents, property and block managers and lettings agents would improve investor perception of the Resi market and promote growth within it.

My last few months …

My editor keeps asking me to write more about what I actually do as CEO of RICS. Well, without boring you with too much internal housekeeping, we have had a major restructuring here at RICS since I started and introduced a new operating model.

The priorities for RICS are now: to be a thought-leader within the property world and a constructive and powerful influencer of Government policy. We must continue the work of bringing our whole organisation closer to our members and deliver real value to them.

We must broaden our membership base to include those new participants in our business-like data analysts, technology experts, operators in debt and capital markets.

We must help our members understand and navigate the world of AI. It is not only in our members’ interests, but also very much in the public interest too, that all aspects of the UK real estate sector continue to be properly run and trusted. Change starts at the top – six of my eight Executive Board have been in post less than year.

     … my next few months

And so a key focus for me as the Winter turns to Spring and the days become longer will be to stimulate our momentum in transforming RICS. Delivering exceptional experiences for our members will continue to be our North Star, but we will be regionalising roles across the organisation and reallocating resources UK-wide to reflect our membership base.

Establishing a new operating model is a significant milestone for our organisation and will make us even more accessible and relevant to all stakeholders, including governments and educational establishments, while ensuring we bring on board the right talent, expertise and experience. We have a lot of work to do over the next few months, but these are exciting times and I’m looking forward to the challenges and opportunities which lie ahead for us all.

And finally … the office and WFH

Earlier I mentioned that one of the positive macro- factors for the property world is the return to the office. I believe very strongly that it is in the interests of employees, and especially younger staff and those that do not have homes where work is easily undertaken, that office life resumes.

Of course, we must be flexible and understanding of modern work/life practices but I know one thing for sure: I cannot do everything I want to do for RICS, and its members, unless I am alongside and together in person with my colleagues at least three days a week.

– Justin Young CEO, RICS.