The 2026 market has hit the ground running with a rebound in demand levels, following a quiet end to 2025. With mortgage rates stabilising at the lowest level in 3 years, buyers are back - but they have more choice than they’ve had in 8 years.
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We expect a stronger than usual start to 2026 as buyers return to the market after the Autumn Budget and seasonal slowdown. The appetite to move home remains strong, but house prices will be kept in check by affordability constraints throughout the market.
Rental growth slows to 2.2% as supply rises and demand drops to 6-year low.
With the Budget uncertainty now lifted, buyers and sellers can return to making decisions about their next move. Removing the threat of a new annual property tax from 210,000 homes for sale will help revive market activity in higher-value areas. However, the lack of any stamp duty reform means homebuyers will continue to face rising purchase costs.
Budget uncertainty is driving a ‘wait and see’ approach for new buyers while committed movers continue to try secure sales ahead of the year end. Realistic pricing remains key for sellers securing a sale.
Pre-Budget speculation over possible tax changes is impacting market activity for homes over £500,000. The rest of the mainstream housing market is carrying on, largely unaffected.
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