Why We Believe 2026 Will Be a Positive Year for the Housing Market

As we move into 2026, we are seeing a far more positive and settled outlook for the housing market. Over the past year, buyers and sellers have had to contend with uncertainty around interest rates, inflation and potential policy changes. Now that many of those unknowns have been resolved, confidence is starting to return, which is exactly what a healthy property market needs.

Budget uncertainty is now behind us

The November Budget caused a noticeable slowdown in activity towards the end of last year. We spoke with many buyers and sellers who chose to pause their plans due to rumours of possible stamp duty changes and other housing related measures. In reality, those changes never came. With the Budget now out of the way and no negative surprises for the property market, that uncertainty has lifted and people feel more comfortable making decisions.

Mortgage rates are continuing to improve

One of the most encouraging signs is the continued easing of mortgage rates. With the Bank of England base rate now at its lowest level in nearly three years, borrowing costs are starting to feel more in line with long term expectations.

The mortgage rates of five to six percent seen in recent years felt like a sharp adjustment for many buyers rather than a new normal. As rates continue to come down, affordability is improving, lenders are becoming more confident and fixed rate mortgage products are looking increasingly competitive. While we are not expecting a return to ultra low rates overnight, this shift does point to a more stable and sustainable lending environment.

Motivation is returning for buyers and sellers

We are already seeing a noticeable change in mindset. Buyer registrations are strong, with people actively booking viewings rather than simply monitoring the market. At the same time, more homes are coming to market, providing buyers with choice and sellers with reassurance that there is genuine demand.

This balance is important. Motivated buyers combined with a healthy level of new stock creates the conditions for steady transactions rather than rushed decisions or prolonged delays.

Pricing expectations are becoming more realistic

Another positive trend is that sellers are approaching pricing with a more informed and pragmatic mindset. With clearer market conditions, many homeowners are taking professional advice and pricing their properties accordingly. This often leads to smoother negotiations, fewer fall throughs and a more confident journey from offer to completion.

Why 2026 feels different

Compared to the last few years, 2026 feels calmer and more purposeful. Buyers are making decisions based on lifestyle changes such as upsizing, downsizing or relocating, rather than reacting to headlines. Sellers are planning moves with greater certainty rather than waiting indefinitely for the perfect moment.

From our perspective, this return to a more normal market is a very positive sign.

Our outlook for the year ahead

As the year progresses, we expect steady and consistent levels of activity rather than dramatic peaks. For buyers, this means opportunity and choice. For sellers, it means that well marketed homes priced sensibly are attracting strong interest.

If you are considering a move in 2026, whether buying, selling or both, now feels like a sensible time to start the conversation. With clearer conditions, improving mortgage options and motivated movers on both sides, the year ahead looks encouraging.

If you would like tailored advice on the local market or want to understand what this outlook means for your own plans, we are always happy to help.