Sun 01 Mar 2026
WHAT'S HAPPENING IN THE UK PROPERTY MARKET RIGHT NOW AND WHAT DOES IT MEAN FOR BUYERS AND SELLERS?
1. Big Drop in Asking Prices
- According to Rightmove, asking prices dropped by 1.8% in November, which is the steepest November fall in over a decade. - Sellers are under pressure due to a high volume of homes on the market and uncertainty around the upcoming Budget.
- About 34% of listings have reduced their asking prices, with the average cut being ~7%.
2. What the Autumn Budget Means for the Market
The 2025 Autumn Budget was more modest than expected in terms of property changes, but a few updates will affect certain groups:Key confirmed measures:
- A new “high-value property” council tax surcharge will apply to homes over £2 million from April 2028.
- Tax on rental/property income will rise from April 2027, affecting landlords and investors.
- No changes to Stamp Duty (SDLT) for regular homebuyers- earlier speculation about big reforms did not materialise.
Overall, the Budget largely maintains stability for most buyers and sellers, with bigger impacts felt mainly at the high end of the market and within the landlord/investor community.
3. Shift Toward a Buyer’s Market
- Emerging data suggests the UK market is becoming more favorable to buyers due to rising supply. - According to Zoopla/ONS numbers, house-price inflation is slowing.
- With more homes to choose from and some sellers cutting prices, buyers may have more negotiating power.
4. Mortgage Rate Environment
- Fixed mortgage rates have been easing. According to Rightmove, average two-year fixed rates are lower than last year. - There’s some market expectation of a Bank of England rate cut soon, which could further support affordability.
What This Means for Buyers & Sellers
For Buyers:- Good time to negotiate: With asking prices falling and more homes on the market, you might have more leverage.
- Beware of tax changes: Potential reforms could increase long-term costs, especially for higher-value homes, so factor this into your buying strategy.
- Plan around interest rates: If rates do drop after a Bank Rate cut, buying sooner could lock in a good deal; but also weigh up if waiting makes sense for you.
For Sellers:
- Pressure on pricing: Sellers may need to be more realistic on price — especially with many reducing their guides already.
- Timing could be critical: With the Budget coming up, decisions on selling now vs later could be impacted by any announced tax changes.
- Marketing strategy is more important: With higher inventory, standing out (good photos, staging, right agent) is key.
In short: this isn’t a time for uncertainty, it’s a time for strategy. For buyers, the growing supply and softer prices may present real opportunity, but tax-reform risks mean you should think long term. For sellers, timing and presentation are more important than price alone, as market conditions become less favourable. Whatever your goal, staying informed and working with trusted experts can help you capitalise on the changes, rather than be caught off guard.
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