The large housing market developments over 2025 have been supportive of brokers’ rising their revenues. Rents are nonetheless rising and that is flowing into administration revenues whereas the will to maneuver residence stays robust regardless of the decidedly soggy finish to the yr on the again of Funds hypothesis. Competitors within the mortgage market stays fierce, supported by this month’s lower to the bottom price. We think about what brokers ought to count on in 2026?
Want to maneuver residence stays robust
Once we survey shoppers we discover that twice as many householders say they wish to transfer as will really handle to take action throughout the subsequent two years. This highlights how the urge for food to maneuver stays robust persevering with the pattern over 2025 the place the housing market will register probably the most gross sales completions for 3 years and 10% greater than final yr.
These sellers must preserve their ft on the bottom on what patrons can pay, particularly in southern England the place there stays a whole lot of alternative of properties on the market for patrons which is preserving value will increase in test. The scope for costs to extend is larger away from southern England the place affordability is much less of a constraint on residence strikes. General we count on home costs to be 1.5% greater in 2026 with costs growing at a sooner price in northern England and Scotland and slower throughout the south of England.
Higher search to drive extra residence strikes
The chance to get extra folks making their shifting ambitions a actuality can be about serving to them look past the place they dwell right now. The previous adage that 80% of individuals transfer inside 5 miles of the place they dwell is being challenged by rising affordability pressures and rising shopping for prices.
Property search must grow to be extra highly effective and intuitive and provides folks extra scope to look additional afield to make their residence strikes a actuality. Our personal knowledge exhibits greater than 40% of individuals residing within the south of England trying greater than 10 miles for his or her subsequent residence – that is one thing brokers must consider as they plan their advertising methods.
Whereas costs are rising slowly we count on one other robust yr for gross sales at near 1.2m in keeping with the ten yr common.
Strongest yr for landlords shopping for property since 2022
It’s not simply owners who’re extra energetic within the gross sales market. The variety of new purchase to let mortgages for purchases of property is the very best for 3 years in 2025. Robust rental inflation, up 35% in 5 years, and fierce competitors within the mortgage market is encouraging cashflow centered landlords again into the market.
This new funding is just not uniform and tends to be centered the place rental yields are highest, which is in northern England and Scotland for typical rented properties with some HMOs and different types of investing the place yields are greater.
There stay hurdles for landlords however after 10 years of consolidation the landlords left available in the market clearly just like the cashflow from investing. The chance stays for brokers to focus on the 50% of self-managing landlords who is probably not ready for the additional complexity and fines/hire compensation orders purchased by the brand new Renters Rights Act.
Mortgage charges steady however robust competitors
The lower to the bottom price was welcome forward of Christmas and sends a message that borrowing prices are coming down. One of the best mortgage charges for homebuyers with massive deposits are already very aggressive, sub 4%, and that is prone to stay the case over 2026.
Dwelling patrons ought to assume mortgage charges will stay at or round present ranges over 2026. The housing market has now adjusted to those greater charges and this implies scope for modest home value inflation and development in rents which, together with respectable ranges of housing gross sales, will assist continued development in property company revenues over 2026.
Richard Donnell, govt director, Zoopla.
