January 2026 UK Property Market Update
The new year has brought fresh momentum to the property market. Buyer demand is building, mortgage rates are easing and more sellers are choosing to list their homes. With spring traditionally the strongest time to sell, now is the perfect moment for homeowners to review their options and understand the true value of their property.
1. The Market Has Started 2026 Stronger Than Expected
January delivered one of the most positive openings to a year since the pandemic. New property listings were 15.5% above the January average and overall stock levels are 2% higher than last year. Activity from serious movers is also up sharply, with registrations for conveyancing and surveys 58% higher than January 2025. The message is clear – homeowners are confident, and buyers are engaging early.
2. Committed Buyers Are Actively Searching
Despite headlines about economic uncertainty, buyer intent remains solid. First-time buyers now account for 59% of all early-year transactions, helped by improving mortgage deals and easing affordability. Although agreed sales were 6.5% lower than the exceptional start to 2025, they are still 2% above the five-year average – proving genuine demand is still there for the right properties.
3. Pricing Accuracy Is More Important Than Ever
The data shows a widening gap between asking prices and what buyers are prepared to pay. New listings are coming on at an average of £411 per square foot, yet homes actually going under offer are achieving £352 per square foot. With price reductions currently 33.5% above the long-term average, sellers who price correctly from day one are the ones securing quicker, stronger offers.
4. Mortgage Affordability Is Improving
Mortgage conditions continue to move in the right direction. Average fixed rates have fallen to 4.83% (two-year) and 4.91% (five-year), with product choice now at its highest level since 2007. Affordability is projected to improve from 45% of average income last year to around 41% in 2026, giving buyers more confidence and greater borrowing power.
5. Spring Remains the Best Time to Sell
History shows that February and March are the most successful months to list a property, with 66% of homes listed in this period going on to complete, compared to a yearly average of 55%. Buyer enquiries typically peak now, and the average time to find a buyer is just 51–52 days. With demand building and more buyers active than at the end of last year, this is the ideal window to bring your home to market.
What This Means for You
The market is active, buyers are motivated, and conditions are improving – but success depends on accurate pricing and expert marketing.
If you’re considering selling this year, now is the perfect time to get a clear picture of your property’s current value.
👉 Request a free, no-obligation valuation today and let us help you plan the best route to a successful sale.
