Property trends: what 2026 has in store for the market

The property market is starting to resume pace once again after what has been a challenging and turbulent few years.

But what does this mean for the coming 12 months, and what are the most important things that potential buyers and sellers should be aware of?

In short, we can expect 2026 to be a more balanced year for the property market, with signs of modest price growth driven by slowly easing mortgage rates and a backlog of postponed moves.

It could also be fuelled by lower borrowing costs, stronger consumer sentiment and renewed demand.

This is in part because a significant number of buyers and sellers who put their property plans on hold during the high-rate period of recent years are expected to re-enter the market, creating a much more energetic and competitive environment.

Average prices

As we know from market trends over the years, if there is improved confidence and more activity, it’s likely that sellers will benefit from an uptick in asking prices.

CityRise forecast that national house price averages are generally predicted to rise by approximately 4% to 5% in 2026, signalling the start of ‘a sustained upward trajectory following two years of stagnation’.

In turn, buyers should be aware that this means the average £280,000 house price could gently exceed £300,000 by the end of 2026.

Environmental performance

At the same time, we can expect continued focus on the importance of energy efficiency and performance ratings in properties, both for sale and for rent.

Both for environmental and running cost reasons, buyers and tenants will increasingly seek homes that have a good mix of better insulation, efficient boilers, double glazing and modern appliances.

That means the owners of properties with creaky boilers and plywood walls will need to seriously up their game if they are to compete with new builds featuring solar power or other renewable energy advantages.

Time to invest

It’s no secret that cost-of-living issues will have put many potential buyers off making a property purchase in recent years.

And it is likely that among those feeling priced out will be individuals whose focus remains on the private rented sector as tenants.

Continued demand for rental properties is good news for landlords, who of course have had many challenges to face in the market.

Let’s hope 2026 marks a turning point for landlords and underpins the desire to return to investing in properties for let.

Be prepared

If you’re thinking of buying, make sure that you are ready to act. With increased attention on the property market, having your finances in order will allow you to make offers swiftly and beat competing buyers.

And if you’re thinking of selling, keep in mind that timing is everything – the window between Boxing Day and late January has historically offered a surge in buyer interest, providing a stronger time for your sale.

With potential buyers needing to invest sensibly, remember that overpricing your home can lead to severe delays and eventual price reductions.

At Chinneck Shaw, we can provide an accurate valuation and help you with all aspects of the property market in Portsmouth and Southsea. Whether you’re buying, selling or renting – we’ve got you covered. For more information on our support for sellers, visit our sell pages. And for buyers, landlords and tenants, we have a range of really useful information on our property search pages.

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