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 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.
Housing market activity is up this summer with high demand, more sales and a record number of houses on the market in July 2025.
More sales, rising supply, plenty of demand and modest house price growth shape a steady UK housing market in June 2025.
Lower mortgage rates are supporting more house sales against a backdrop of modest house price inflation. Our House Price Index tracks key trends in the UK housing market - here’s the latest news in May 2025.
Mortgage rates are likely to stay in the 4-5% range this year but changes to affordability testing gives buyers a boost.