A Stronger Start Ahead for the Property Market as 2026 Approaches

A Positive Shift in the Property Market as the Year Draws to a Close

 As we approach the end of the year, the UK property market is showing encouraging signs of stability and quiet confidence. Rather than concern or hesitation, the mood across the housing sector feels reflective and measured, which is exactly what we would expect for this time of year.

December has traditionally been a period of adjustment, and current figures reflect normal seasonal behaviour rather than any underlying weakness. Average new seller asking prices have eased by approximately 1.8%, bringing the national average to around £358,138. While some may interpret this as a dip, it is best viewed as a natural recalibration that has created stronger foundations for the year ahead.

At Integra Estates, we see this adjustment as a healthy reset that benefits both buyers and sellers and supports a more balanced and resilient market moving into 2026.

How 2025 Has Positioned the Market for Growth 

A Gentle Price Correction with Long Term Benefits

Across the year, property prices are finishing just under one per cent lower than 2024. Rather than signalling decline, this modest movement has helped bring expectations back in line with reality. It has encouraged sensible pricing, improved affordability and created a market where motivated buyers and realistic sellers are able to move forward with confidence.

This environment supports smoother transactions, stronger buyer engagement and reduced price renegotiations, all of which contribute to a healthier market overall.

Confidence Returns After a Cautious Second Half

The Impact of Uncertainty Earlier in the Year

The slower activity seen during the latter part of the year was largely influenced by uncertainty surrounding the Autumn Budget. From late summer onwards, speculation around potential tax and policy changes caused many buyers and sellers to pause major decisions.

As a result, the number of new properties coming to market shifted noticeably. Early in the year, listings were well ahead of 2024 levels. By the second half, supply dipped slightly below last year as caution set in.

Buyer Demand Remains Resilient

Buyer demand followed a similar pattern, with strong momentum early on and a natural softening later in the year. Importantly, despite this slowdown, the broader picture remains positive.

Across the full year, sales agreed are still approximately three per cent higher than in 2024, demonstrating that people are continuing to buy and sell homes, even during periods of uncertainty.

 Encouragingly, since the Budget, early indicators show renewed confidence. In London, particularly at the upper end of the market, the number of new sellers has increased week on week, suggesting that clarity has returned faster than many expected.

The Boxing Day Bounce and Renewed Momentum

Why Early 2026 Looks Promising

The period immediately after Christmas is traditionally one of the busiest times of year for the property market, and current indicators suggest the Boxing Day bounce could be stronger than usual.

Many buyers and sellers who delayed decisions earlier in the year are now expected to re-enter the market with greater certainty. This renewed activity typically drives increased enquiries, more listings and stronger early year momentum.

Mortgage Rates and Buyer Confidence

Looking ahead to 2026, several key fundamentals are aligning positively. Buyer affordability has improved, supported by:

• lower mortgage rates
• steady wage growth
• more flexible lending criteria
• increased choice of available homes

The average two-year fixed mortgage rate is now sitting around 4.33%, compared to just over five per cent a year ago. Combined with slightly softer house prices, this creates conditions that closely resemble the stronger first half of this year.

Measured Growth Rather Than Volatility

Based on current fundamentals, we expect asking prices to grow by around two per cent during 2026. This signals steady, sustainable progress rather than sharp or unsustainable spikes, which is exactly what supports long term confidence in the housing market.

How Different Buyer Groups Are Being Affected

First Time Buyers

Properties suited to first time buyers are currently averaging around £221,950. These homes saw modest seasonal softening in December, which often acts as a springboard for renewed demand in the New Year.

Second Steppers

Homes designed for second steppers, typically those moving up the ladder, are averaging approximately £334,297. This segment remains active, supported by improved affordability and a greater range of choice.

Upper Market Properties

At the top end of the market, average prices are sitting close to £642,131. While this sector also experienced seasonal adjustment, it is already showing signs of increased confidence, particularly in London and well connected areas.

Across all price points, these movements reflect a natural seasonal pause rather than any structural weakness.

Our View at Integra Estates

From our experience on the ground across South East London and North Kent, confidence is steadily building. Buyers are better informed, sellers are more realistic and conversations are increasingly focused on moving forward rather than waiting for perfect conditions. This balance is exactly what creates a healthy, resilient property market.

If you are considering a move in 2026, now is an excellent time to start planning. Early preparation allows you to understand your position, monitor the market and move decisively when the right opportunity arises. Whether you are buying, selling or simply seeking honest advice, the team at Integra Estates is always here to guide you with clarity, care and integrity.

Frequently Asked Questions

Is the property market improving as we move into 2026?
Yes. Indicators suggest growing confidence, improved affordability and steady conditions rather than volatility.

Are house prices expected to rise in 2026?
Current forecasts suggest modest growth of around two per cent, supporting stability rather than sharp increases.

Is now a good time to plan a move?
Yes. Planning early allows you to take advantage of improving conditions and increased choice.

Are mortgage rates becoming more favourable?
Mortgage rates have eased compared to last year, which has improved buyer affordability.

Does seasonal price movement indicate market weakness?
No. Seasonal softening is normal and often precedes renewed activity in the New Year.

If you are thinking about buying or selling in South East London or North Kent in 2026, our experienced and approachable team is here to help you plan with confidence. Speak to Integra Estates today for honest advice, local insight and expert guidance.

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