Sellers are finding buyers as fast as last year and buyer demand has rebounded since Easter. The UK market is proving surprisingly resilient to global uncertainty but confidence varies across the country with higher mortgage rates felt more keenly in the South.
The rental market is moving back towards balance as supply improves and demand eases. For renters, you can expect more choice of homes and slower rent increases than in recent years.
The year has begun with renewed momentum in the housing market, supported by improving mortgage market conditions.
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.
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.
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