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.
Rental market conditions are starting to normalise as supply and demand rebalance. The affordability of renting remains a key constraint on the pace of future rental inflation.
How likely is a property tax shake-up? What does it mean for buyers and sellers today? Here's our take on the recent speculation about removing stamp duty and introducing a new tax on homes worth more than £500k.
Housing market activity is up this summer with high demand, more sales and a record number of houses on the market in July 2025.
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