OfferPeople Properties

08/02/2026

07/02/2026

UK Property Market Update – February 2026

The UK property market has entered 2026 in a more stable position after the uncertainty of last year. Prices are rising slowly, buyer confidence is improving, and activity is picking up, but the market is still sensitive to interest rates and affordability pressures. Overall, experts expect steady growth rather than any major boom or crash.

Interest rates remain the key influence. The Bank of England has recently held the base rate at around 3.75%, with markets expecting only gradual cuts through the year if inflation continues to ease. Mortgage rates have stabilised but remain higher than pre-2022 levels, meaning affordability is improving slowly rather than quickly.

House prices are moving upwards again, but at a controlled pace. Recent data shows prices rebounding slightly after late-2025 weakness, with economists widely forecasting roughly 2%–4% growth during 2026 as borrowing costs ease and confidence improves.

Market activity is improving too, with mortgage approvals and buyer enquiries slowly rising, although the market is still considered fragile and sensitive to economic changes. Regional differences remain important, with some more affordable areas performing better than expensive southern markets where affordability is more stretched.

Looking ahead, most forecasts suggest 2026 will be a year of gradual recovery. If interest rates fall slightly and wages continue to grow, housing demand and transaction levels should improve. However, affordability pressures and the large number of fixed mortgages resetting this year could limit how fast the market strengthens.

In simple terms, the UK property market in 2026 looks steady and improving, but not booming. Prices are expected to rise modestly, activity should slowly increase, and interest rates will continue to be the biggest factor shaping the market.

07/02/2026

UK Property Market 2026: What the New Year Holds for Homeowners

A Fresh Start for the Housing Market
As the calendar turns to 2026, the UK property market enters the new year on a notably different footing than it did twelve months ago. Average house prices across England and Wales closed 2025 at £298,400 — up 3.2% year-on-year according to the latest ONS figures — marking the strongest annual growth since mid-2023.

Interest Rates: The Catalyst
The Bank of England's decision to hold the base rate at 4.25% through December has given the mortgage market time to settle. Average two-year fixed rates now sit at around 4.6%, down from the 5.8% peaks seen in late 2023. Five-year fixes are even more competitive at 4.3%, tempting many homeowners to lock in before any further movement.

"We're seeing a marked increase in mortgage approvals heading into Q1 2026. Buyer confidence is returning." — Andrew Bailey, Bank of England Governor
Regional Winners
The North West continues to outperform, with Manchester seeing 5.1% price growth over 2025. Birmingham and Leeds are not far behind, both benefiting from infrastructure investment and strong rental demand. London, by contrast, saw a more modest 1.8% rise — though prime central London showed a surprising 4.2% bounce as overseas buyers returned.

What This Means for Sellers
If you're considering selling in 2026, the early months could present an excellent window. Stock levels remain below the 10-year average, meaning less competition. Properties priced correctly are selling within 30 days on average, according to Rightmove data.

For those who need a fast, certain sale — perhaps due to chain complications, inheritance, or financial pressure — cash buying companies like OfferPeople continue to offer a reliable alternative to the open market. No chains, no gazumping, and completion in as little as 7 days.

07/02/2026

UK Rental Market Hits Record Highs: What's Driving the Surge?

Record-Breaking Rents

The UK rental market has entered uncharted territory. According to the latest data from HomeLet, the average monthly rent across the UK hit £1,326 in December 2025 — a 6.8% increase year-on-year and the highest figure ever recorded. In London, the average has breached £2,200, with some boroughs seeing double-digit annual growth.

Why Are Rents So High?
The answer is fundamentally one of supply and demand, but several specific factors are amplifying the imbalance:

1. Landlord Exodus

An estimated 300,000 rental properties have been withdrawn from the private rented sector since 2020, according to the English Private Landlord Survey. Tax changes, increased regulation, and the Renters Reform Act have made many landlords question whether the hassle is worth the return.

2. Population Growth

Net migration to the UK reached 685,000 in 2025, broadly in line with the previous year. New arrivals overwhelmingly enter the rental market initially, adding significant demand pressure — particularly in London, the South East, and major university cities.

3. Build-to-Rent Hasn't Filled the Gap

While the build-to-rent sector has grown impressively — now accounting for approximately 100,000 homes — it represents less than 2% of the total private rented stock. These purpose-built developments also tend to command premium rents, offering little relief at the affordable end.

4. First-Time Buyer Challenges

Despite improving mortgage rates, the average first-time buyer deposit now stands at £62,000 according to Halifax. Many would-be buyers remain trapped in the rental sector, competing with a growing pool of tenants.

What This Means for Property Owners
High rents create two interesting dynamics for homeowners:

Holding becomes more attractive — if your property is tenanted, the income case for holding has rarely been stronger
Selling to investors is viable — properties with strong rental yields attract cash buyers who can move quickly
For those who need to sell, the strong rental market means investor buyers are actively seeking stock. OfferPeople works with a network of vetted investors, ensuring you receive competitive offers that reflect the income potential of your property — not just its bricks-and-mortar value.

07/02/2026

Stamp Duty Changes: How the Spring 2026 Adjustments Affect You
The New Normal

As of April 2025, the temporary stamp duty thresholds that were introduced during the pandemic era have fully reverted to their pre-2022 levels. This means:

- Standard buyers now pay stamp duty on properties above £125,000 (previously £250,000)
- First-time buyers get relief on properties up to £300,000 (previously £425,000)
- The surcharge for additional properties remains at 5% (increased from 3% in October 2024)

The Real-World Impact

For a typical first-time buyer purchasing at the UK average of £298,400, the stamp duty bill has effectively doubled compared to 2024.

Market Reaction

The reversion was widely anticipated, and the market has largely priced it in. However, Rightmove data shows a noticeable pattern: a rush of completions in late March 2025 as buyers scrambled to beat the deadline, followed by a predictable dip in April-May. Transaction volumes have since normalised, but remain approximately 8% below the 2024 average.

How are Sellers Adapting?

Smart sellers are recognising that in this environment, buyers are factoring stamp duty into their offers. A property listed at £310,000 now carries a £5,500 stamp duty bill for a first-time buyer — money that could otherwise go toward furnishing, moving costs, or simply staying in budget.

This is leading to more realistic pricing and, in some cases, vendors effectively absorbing the stamp duty impact through slightly lower asking prices. The net result for sellers is broadly neutral, but the psychological impact on buyer behaviour is real.

In a market where transaction costs have increased and buyer budgets are squeezed, the traditional selling process — estate agents, viewings, chains, negotiations — carries more risk of fall-through than ever. The current fall-through rate stands at approximately 32% according to Rightmove, meaning roughly one in three agreed sales never complete.

Cash buyers like OfferPeople eliminate this uncertainty entirely. No chains, no mortgage complications, no stamp duty concerns on our end. When we agree an offer, it sticks — and we can complete in as little as 7 days.

The Spring Budget, expected in March 2026, may bring further changes. There has been speculation about a targeted relief scheme for downsizers — older homeowners looking to free up family-sized homes for younger buyers — but nothing has been confirmed. We'll keep you updated as the political landscape develops.