The UK property market entered 2026 with genuine momentum.
Key lenders, economists, city analysts and estate agents had anticipated steady upward progress, based on healthy inflation, strong employment and falling interest rates.
Everything was pretty much in balance, until of course the headwinds of the conflict in the middle east came along and blew much of those eagerly anticipated gains to be all but blown away.
The geopolitical backdrop has now materially shifted the interest rate outlook, to deflect the expected inflation resulting from higher oil prices. And the cost of living cannot escape. So instead of reducing interest rates as expected, the Bank of England Monetary Policy Committee The Bank of England recently held its benchmark rate at 3.75% for a third consecutive meeting, and they have warned that any interest rate cuts this year, which was the catalyst the market had been waiting for, look increasingly distant.
This is all beginning to play out in the property market and so far this year, new property listings are running about 23% above the ten-year average, with much of this stock being carried over from last year. Yet nationally, sales arranged are down 7.6% on last year, although healthily, this is still nearly 13% above pre-Covid norms. But the figures do suggest a strong buyers’ market with sellers across the UK facing a median gap of 22% between initial asking price and their final sale figure.
The key now, and our best advice to sellers is, if you want to move don’t factor in a price reduction –simply price ahead of the market at the outset, and you will sell your home. This then puts you in an immensely strong position to negotiate a much lower figure on your onward purchase. And if you’re upgrading in this market you could do very well.
Why not ask us about the strategies we’d use to help you move –you might be pleasantly surprised.
So if you’re comparing estate agents, it’s worth looking at how many of their sales arranged have had their initial asking price reduced.
In this market, you need a strong no-nonsense agent who’ll give it to you straight. And this is where Swoople can help you make those comparisons.