The property market has started 2026 on a noticeably stronger footing, with encouraging signs for both homeowners considering a sale and landlords reviewing their portfolios.
After a cautious end to 2025, January has seen a clear increase in buyer activity, supported by improving mortgage affordability and renewed confidence across the market.
Buyer demand is picking up.
National house price indices show year-on-year growth strengthening in January, alongside a modest monthly price uplift. More importantly than prices alone, buyer enquiries and viewing requests have risen, often the earliest indicators of a healthier market ahead of Spring.
This renewed demand is being driven by buyers who delayed moving decisions last year and are now re-entering the market with greater certainty around borrowing costs.
For vendors, this matters: demand is returning before stock levels rise significantly, which historically creates better conditions for well-priced homes coming to market early in the year.
Mortgage rates easing is improving affordability.
Mortgage interest rates have continued to soften from the highs seen last year. Many fixed-rate products are now significantly lower than in early 2025, resulting in lower monthly payments for buyers.
Even small reductions in interest rates can have a noticeable impact on affordability, which:
- Increases the pool of active buyers
- Improves buyer confidence when making offers
- Supports price stability rather than downward pressure
This shift is particularly relevant for vendors aiming to achieve strong prices and smooth transactions, as affordability is often the deciding factor between interest and committed offers.
What this means for vendors
For homeowners considering selling in 2026, the early signs are encouraging:
- Buyer demand is rising ahead of the traditional Spring market.
- Mortgage affordability is improving.
- Serious buyers are returning, not just browsers.
Properties that are priced correctly and well-presented are already seeing strong engagement, with motivated buyers keen to secure homes before competition increases later in the year.
What this means for landlords
Landlords are also benefiting from this improving landscape:
- Strong buyer demand supports capital values.
- Improved mortgage products may open refinancing opportunities.
- Tenant demand remains robust, underpinning rental income.
For those reviewing whether to hold, refinance, or rebalance portfolios, the current market offers a more stable backdrop than we’ve seen for some time.
Looking ahead
While no market is without its challenges, the opening weeks of 2026 suggest a more balanced and active year ahead for both sales and lettings.
Early movers often benefit most, whether that’s vendors launching before stock levels rise, or landlords taking advantage of improving finance conditions.
If you’re considering selling, refinancing, or simply want an up-to-date view on what this means for your property locally, now is a sensible time to have that conversation.
