Sales are holding up despite fewer buyers in the market but pricing correctly remains essential for sellers in 2026. The key finding this month is that first-time buyers are spending more and not compromising on what they want to buy.
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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.
There are fewer buyers in the market than a year ago, but those who remain are still getting deals done. Higher mortgage rates are adding caution, which means pricing to sell is more important than ever.
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.
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.
