A property expert has shared his predictions on what he believes will happen in the housing market in 2026.

Property expert Jonathan Rolande, the founder of House Busy Fast believes eight key factors will shape the next 12 months.

“The UK housing market moves into 2026 after a year of Budget uncertainty that pushed many people to pause their plans,” he said.
“Many buyers and sellers stepped back while waiting to see what might change, creating pent-up demand that has not disappeared.

Recent figures from the BoE show British households holding over £2 trillion in cash and the market has started to show subtle signs of a softer jobs market, especially in retail and hospitality. All of this will shape what happens next.

"Last year's Budget paralysis created hesitation, but 2026 brings turning points that could unlock activity.

“Pent-up demand meets softening inflation and potential rate cuts, which gives all the ingredients for surprising market movement if households use the money they have in reserve."

Here Jonathan shares eight ways the UK housing market will change in 2026:

1. More people decide to move

“I expect many buyers and sellers who delayed in 2025 to return this year. Their reasons for moving have not vanished. As savings rates fall with any Bank of England cuts, I think more households will question keeping large sums in cash. That money will flow into property, lifting transactions, especially in the first half of the year.”

2. A softer jobs market cools rents

“We can expect the weakening jobs picture to show up in the rental sector. As redundancies appear in retail and hospitality, many renters feel less secure. People become cautious about taking on higher rents or moving to more expensive homes. I think this will ease competition for rental properties and slow rent growth sharply compared with recent years.”

3. Landlords take a more cautious stance

“For landlords, I see 2026 as a year where caution replaces aggressive growth. Slower rent rises and higher costs on mortgages and maintenance make new purchases harder to justify, especially when borrowing is involved.

My expectation is that most serious landlords will manage and improve existing portfolios rather than chase expansion. Those buying in cash will find opportunities, but they will be much more selective.”

4. Inflation moves closer to target

“A key part of my outlook is that slowing wage growth and cooler rents will help bring inflation nearer to the Bank of England's 2% target. As that happens, I believe confidence among borrowers will improve. People who have endured repeated rate hikes should feel that the worst is behind them. That change in mood often makes buyers more willing to commit.”

5. Rate cuts help some buyers more than others

“If inflation behaves as expected, I think further rate cuts are likely in 2026. Lower base rates mean lenders can offer better mortgage deals, which will be a relief for many people.

However, I do not expect banks to relax criteria across the board. In sectors where employment looks fragile, lenders are likely to remain strict. Some buyers will feel a clear improvement in affordability, while others could still find access to finance challenging.”

6. Savings start to move into property

“The high level of household savings is one of the biggest wildcards this year. If the base rate drifts towards 3.25% by autumn and savings rates follow it down, more people will look for long‑term alternatives. Property remains a familiar choice in the UK and I expect to see more of that money used for home moves, second homes or investments. This flow of savings could help support prices and activity.”

7. Business pressures slow some local markets

“I also expect higher costs for businesses, from wages to rates and compliance, to weigh on housing demand in some areas. When employers feel under pressure, they are less likely to expand or relocate staff, and that feeds through to local housing markets.
Regions relying heavily on vulnerable sectors will see softer demand, while areas with resilient employers will hold up better.”

8. Migration changes have limited impact

“Finally, I factor in changes to migration. Stricter visa rules and higher emigration may take pressure off demand in some rental hotspots. However, I do not expect this to transform the market. The underlying shortage of homes remains so severe that these shifts will only adjust the edges rather than change overall direction.”

I see 2026 as a year where the market stops and starts rather than surges. Opening months may feel cautious, but there is clear potential for activity to pick up if rates fall and households feel ready to deploy savings. The real test will be whether pent-up demand is strong enough to outweigh ongoing concerns about jobs and the wider economy.

For more information visit www.jonathanrolande.co.uk