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  • Market Update

21 April 26

4 min read

Spring Housing Market 2026: Supply, Demand, and What It Means for Prices

Spring is traditionally the most active period for UK residential property transactions, and 2026 has broadly followed the seasonal pattern — but with regional variation that is more pronounced than in recent years. Here is our reading of where the market stands as we head into summer.

1

Supply: finally improving, unevenly

New instructions to estate agents rose 14% year-on-year in March and April, the strongest spring supply increase since 2019. The improvement is most visible in the £400,000–£800,000 bracket, where sellers who had been holding off in anticipation of rate cuts have started to list — encouraged by the modest falls in mortgage rates since February.

Supply at the lower end of the market (under £250,000) remains constrained, particularly in the Midlands and North of England. First-time buyer demand in these areas has absorbed available stock quickly, keeping days-on-market figures at historically low levels.

2

Demand: resilient but rate-sensitive

Buyer enquiries are running approximately 8% above the same period in 2025, driven primarily by the cohort of buyers who deferred decisions last year expecting further rate falls that did not materialise. With fixed rates now broadly stable in the 4–5% range, many of those buyers have accepted that sub-4% rates are unlikely in the near term and re-entered the market.

Affordability remains stretched in London and the commuter belt. The combination of high property prices and mortgage rates above historic norms means that first-time buyer activity in these areas is disproportionately dependent on either family support or shared ownership. Outside London, affordability is more manageable, and transaction volumes in the North West and Yorkshire have been running at multi-year highs.

3

Prices: modest growth, no surge

Nationwide's April data showed average house prices 2.8% higher year-on-year — below the 5–7% growth seen in the post-pandemic period but a clear improvement on the modest falls recorded in late 2023 and early 2024. Halifax data tells a similar story, with slightly stronger growth in detached properties and weaker performance in flats, where leasehold reform uncertainty continues to weigh on sentiment.

Our expectation for the remainder of 2026 is continued modest growth in the 2–4% range nationally, with stronger performance in areas where supply constraints are most acute. A further Bank of England rate cut in the second half of the year would support sentiment and potentially push growth toward the upper end of that range.

4

What this means for buyers and sellers

For buyers, the spring market offers more choice than 12 months ago but competition for well-priced properties in sought-after areas remains high. Having an Agreement in Principle in place before viewing — and being prepared to move quickly once a suitable property is found — remains essential.

For sellers, pricing accurately matters more than it did in the frenzied post-pandemic market. Overpriced properties are sitting longer, accumulating price reductions that make them less attractive to buyers. Listings that are accurately priced from day one are selling in days; those that need reductions are taking weeks or months. Your estate agent’s initial valuation advice is worth scrutinising carefully.
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