The Housing Market News – Moving Into the Spring in 2026

Looking ahead to 2026, the market is expected to move into a phase of steady, measured recovery. Confidence is gradually returning, and we anticipate an improvement in transactional activity as both UK-based and international buyers gain greater clarity following recent fiscal changes. While price growth is likely to remain relatively modest in headline terms, the broader picture is one of stabilisation, supported by improving mortgage availability, steady wage growth, and a more balanced relationship between supply and demand across many established markets.

Market Performance Predictions

As is often the case, performance will vary considerably depending on location and price bracket. In London and other well-established prime markets, conditions are expected to remain selective, with buyers continuing to focus on quality and long-term value. Properties that are well located, well presented, and ready for immediate occupation are expected to attract the strongest levels of interest. Conversely, properties that require updating or are brought to market at ambitious pricing levels may take longer to sell, particularly as buyers remain mindful of tax changes and overall acquisition costs.

London’s Enduring Appeal

London continues to hold its position as one of the world’s leading residential markets. For international buyers and UK-based high-net-worth individuals alike, the city offers a combination of legal certainty, global accessibility, outstanding schools and universities, and a cultural offering that remains difficult to replicate elsewhere. As borrowing costs stabilise and currency conditions become more favourable for some overseas purchasers, we expect to see a gradual return of discretionary prime buyers who have been waiting for greater market visibility.

Higher Value Homes

At the very top end of the market, longer-term fiscal policy, including the proposed introduction of additional taxation on higher-value homes from 2028, is already forming part of buyer and seller decision-making. While this is unlikely to significantly affect the most exceptional properties, it may lead to more considered pricing strategies and longer marketing periods across parts of the super-prime sector. In this environment, realistic pricing, strong presentation, and access to an established international buyer network will remain key to achieving successful outcomes.