Property market begins to recover after a sluggish 2025

Posted onFebruary 13, 2026

2025 was a slow year for the UK property market, marked by Stamp Duty changes in April, high average mortgage interest rates, and uncertainty surrounding the new council tax rates in the Autumn Budget.

Forecasts suggested that this market slow down and falling prices trend would continue into early 2026. However, recent reports at the end of January 2026 indicate that for the first time since September, property prices are beginning to increase month on month.

This could be fuelled by a variety of market forces, but most importantly the Bank of England interest rate is forecast to fall, decreasing the cost of mortgages, and wage growth is consistently outpacing property price inflation, enabling more first-time buyers to enter the property market.

However, while the market is excellent for first-time buyers, sellers are struggling to sell properties in light of increased competition, and many sellers are finding themselves pressured in selling at a significant undervalue secure a quick sale. This market slowdown is appearing to affect London and surrounding areas more than the rest of the UK, due to the already heightened property prices in London which remain unaffordable to many buyers.

We are optimistic that the gradual recovery of the property market will even out the bargaining power of buyers and sellers and ensure that while buyers retain a range of competitive options, sellers do not have to wait too long to find a buyer.

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