Leese & Nagle - Magazine - Page 4
UK PROPERTY MARKET WINS:
THE BIGGEST REASONS TO BE
EXCITED RIGHT NOW!
A
s February 2026 gets
underway, the UK property
market is showing
signs of renewed confidence
after an extended period of
caution. While the past few
years have been shaped
by higher borrowing costs
and economic uncertainty,
conditions are beginning
to stabilise. For sellers,
would be sellers, landlords
and prospective landlords,
the current environment
presents reasons for
cautious optimism rather
than continued hesitation.
A MORE FAVOURABLE
BASE RATE SUPPORTING
THE MARKET
Improving
prices are being
supported by a
gradual recovery
in buyer activity.
4
PROPERTY NEWS
One of the most significant shifts
entering 2026 is the Bank of England
base rate now standing at 3.75%. This
reduction has helped reset sentiment
across the housing market, following
a prolonged period when higher rates
dampened affordability and slowed
activity. Although borrowing costs
remain above the exceptionally low levels
seen earlier in the decade, the move to
3.75% has brought welcome reassurance.
Mortgage pricing has adjusted
accordingly, with lenders offering more
competitive fixed rate products than
were available a year ago. For buyers, this
improves affordability and borrowing
confidence. For sellers, it increases the
depth of the buyer pool and supports
healthier levels of demand. Landlords
and would be landlords also benefit from
a lower base rate environment. Reduced
finance costs improve the feasibility of
new purchases and refinancing, helping
to stabilise yields and support longer
term investment planning.
ASKING PRICES FIRMING AT THE
START OF THE YEAR
As borrowing conditions have improved,
asking prices have shown renewed
resilience. Early 2026 data indicates that
average asking prices rose between
December and January, reversing the
softer trends seen in parts of 2025. This
suggests that sellers are becoming
more confident about achievable values,
particularly where supply remains
constrained.
While price growth is not uniform across
all regions or property types, the upward
movement at the start of the year signals
a market that is regaining balance.
Sellers who price realistically and present
their homes well are increasingly well
placed to attract interest.
BUYER CONFIDENCE
GRADUALLY RETURNING
Improving prices are being supported by
a gradual recovery in buyer activity. After
a typically quieter end to the year, early
2026 has seen a pick-up in enquiries as
buyers return to the market with clearer
expectations around interest rates and
affordability.
Buyers remain selective and value
conscious, but improved confidence
reduces the likelihood of prolonged
marketing periods. For sellers, this
shift helps create a more competitive
environment and reduces the pressure to
rely on repeated price reductions.
MORTGAGE CONDITIONS
OFFERING GREATER
PREDICTABILITY
Beyond the headline base rate cut,
the broader mortgage landscape
has become more predictable. Fewer
sudden rate movements have helped
rebuild confidence among buyers who
