Seven trends that will shape the regional housing market in 2026
The UK housing market is set to strengthen in 2026 following a year dominated by political and economic headwinds.
Unstable financial markets, global political tensions, tax changes, and Budget speculation all weighed on housing market activity in 2025.
Looking ahead, however, we expect transaction volumes and house prices to climb this year as interest rates continue to fall and stability improves.
Matt Henderson, Residential Research Lead, says: “Buyers and sellers have greater political and economic clarity as we move into 2026. This will allow them to act with more certainty and confidence in the year ahead.”
House prices are expected to edge up in London, the South East, and other areas with a high house price-to-earnings ratio - especially as interest rates drop further. At the same time, the strong price growth seen across the North and the Midlands in 2025 is likely to moderate in 2026.
“We expect a more balanced housing market this year,” Matt continues, “with house price growth spread more evenly across the country, rather than being driven primarily by the more affordable northern regions.”
Here are the key trends that are set to shape the regional housing market in 2026.
1. The spring market will kick-off early
The traditional spring market is likely to swing into action earlier than usual as buyers and sellers who hit the pause button ahead of the Budget reactivate their plans.
We already saw a post-Budget surge in activity, with a 173% increase in the number of properties brought to the market between 26 November and 5 December, compared with the same period in 2024.
That momentum is expected to spill over into the start of this year, with major country house launches earmarked for the first three months of 2026.
Oliver Custance Baker, Head of our National Country House Department, explains: “Few things rival a garden in spring, but a good country house can be just as stunning on a crisp winter morning. Many clients who paused their sale in the late summer or early autumn of 2025 have now decided to go to the market sooner rather than later this year.”
In Oliver’s view, politically cautious sellers may also be tempted to act ahead of local elections in May 2026.
2. Delayed completions are set to become more common
Timing is expected to play a central role in negotiations in 2026. With houses set to hit the market earlier in the year, buyers and sellers may increasingly opt for delayed completions - often targeting the summer - rather than sticking to more rigid transaction timelines.
“In the second home market, some buyers want to complete in the spring so they can enjoy the full summer season in their new home,” explains Oliver. “We have other clients who are willing to exchange sooner but would like to complete at the end of the summer because they've got various commitments that they need to work around. Everyone’s circumstances are different, but a willingness on both sides to work together on timings can significantly smooth the process.”
3. Turnkey homes will remain in strong demand
Fully renovated homes in prime locations will continue to perform strongly in the country house market.
“The majority of buyers value the ability to move straight into a turnkey home,” says Oliver. “Many people remain sensitive to renovation costs and there’s still a preference to steer away from bigger projects.”
For those who do want to put their own stamp on a property, it is becoming increasingly common to source quotes from builders before making an offer, with buyers wanting full clarity on costs before proceeding.
4. Running costs will move centre stage
“The High Value Council Tax Surcharge (HVCTS) for £2m-plus homes is a figure that will largely be absorbed in the wider running costs of a home, rather than something that will dictate purchasing decisions,” says Claire Reynolds, National Head of Sales. “Whilst we don’t anticipate it stopping serious buyers, it may encourage people to scrutinise a home’s running costs more closely than before.”
It’s for this reason that energy-efficient homes and properties with clear potential for sustainability improvements are expected to stand out.
“Buyers want to understand exactly what a property will cost to run,” adds Oliver. “We're going to the market with detailed information about running costs at our fingertips – something you wouldn’t have seen to the same degree a few years ago.”
Some clients are even going a step further by investigating the potential cost of energy-efficient upgrades, helping buyers make informed decisions and smoothing the overall process.
5. Buyers will return to established, well-connected locations
Country houses in established locations will top buyers’ wish lists in 2026. This marks a shift from the pandemic era, when buyers sought better value in lesser-known spots against a backdrop of soaring house prices - a trend which was undoubtedly helped by the rise of hybrid working.
However, this mindset is beginning to shift as house price growth becomes far more measured, bringing a renewed focus on both quality and location.
“Without the expectation of quick capital gains, buyers are back to prioritising homes that are more likely to hold their value over a longer period. This ultimately means a return to established areas with strong fundamentals – quick transport links into employment centres, high-performing schools and good amenities. Homeowners know that these traditional markers will always attract demand, regardless of the wider market,” explains Oliver.
6. First-time buyers will fuel momentum
First-time buyers are likely to play a significant role in underpinning market activity this year. Lower mortgage rates, coupled with relaxed affordability tests, will encourage more buyers onto the housing ladder. This is likely to have a ripple effect and boost confidence further up the chain.
Matt notes that first-time buyers often have greater flexibility around property type and location than home movers, enabling them to move more quickly.
“First-time buyers are also taking on longer mortgages,” he adds. “30- and 35-year mortgages are now more common, which helps improve affordability and supports demand.”
7. Rental market will acclimatise to Renters’ Rights Act
The Renters’ Rights Act became law in October 2025, and with the government’s implementation timeline now published, the rental market has greater clarity on what comes next.
A large proportion of the legislation comes into force in May 2026 and will affect both new and existing tenancies across three key areas: rent, length of occupation, and increased regulation.
Matt explains: “We now know when the Renters’ Rights Act will take effect and for landlords who are well prepared and offer high-quality accommodation, the impact is unlikely to be as significant as some initially thought.”
Discover the trends set to impact the London market here.