
Buyer activity is beginning to recover after a slower summer, with searches for homes now 7% higher than a year ago. However, higher mortgage rates have reduced buying power, causing sales and house price growth to slow.

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Buyer activity is beginning to recover after a slower summer, with searches for homes now 7% higher than a year ago. However, higher mortgage rates have reduced buying power, causing sales and house price growth to slow.

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UK house price growth has slowed to 1.3% as higher mortgage rates and uncertainty weigh on market activity. While the average home has gained £3,400 in value this year, the picture varies significantly across the country, with some regions seeing strong growth while others face falling prices.

House prices in 2026 are being shaped less by timing and more by pricing. Homes priced correctly are still selling at a steady pace, while homes that have ambitious pricing are taking longer to sell.

UK house prices continue to show modest growth, up 1.4% year on year in June 2026, supported by easing mortgage rates and resilient demand in many regions. Market activity varies across the UK, with improving affordability helping to stabilise conditions.

Rental inflation at 2.1% understates what most renters moving home are experiencing. Three-quarters of rental areas are growing faster than the national average because 25% fewer homes to rent than pre-pandemic levels is keeping rent inflation positive.

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.

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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.
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