This week seller delusion continued despite prime prices tarnishing from overexposure. Landlords continued to bail or if unable, increase prices to compensate, while Foxtons strengthened its rental portfolio to maintain a healthy profit. Meanwhile, AI provided a boost to office spaces in the capital as overseas investors questioned their share in properties as they faced double taxation. Welcome to this week’s UK Property News Recap – 24.04.2026.
Asking prices shuffle forward
This month, sellers walked a precarious line, raising ASKING prices by 0.8% on the portal Rightmove. The top of the ladder appeared to feel the most confident that they would reap the benefits of a spring market, asking 2.4% more. This, Rightmove claim, was due to buyers in this bracket not being as reliant on lending when in fact it suggests dogged optimism. Overall though the market appears to be holding up comparatively well when compared to last year, given the stamp duty holiday incentive that boosted figures, and rising rates. This can largely be attributed to those who fixed a rate ahead of Trumpflation wanting to secure a home before they run the risk of losing it. For many who are still able to move, buying now when average asking prices have fallen 0.9%, lending criteria has relaxed and average earnings have increased by 3.9%, this is as good a time as any to take advantage, especially if a first time buyer.
The real effects of recent rate hikes are yet to fully be felt but without doubt there is renewed caution and wariness that is hitting achieved prices and sales especially in southern regions.
Prime central London continues to feel the squeeze
The abandonment of international buyers has resulted in significant falls in the prime central London market. According to Lonres research conducted in Q1 2026, the biggest discounted borough in the capital was in South Kensington at -16% closely followed by Chelsea who also experienced the biggest percentage of price reductions at 56.8%.
The areas where properties continued to languish were Mayfair and St James with 80.3% of its properties sitting on the market for over three months despite an average discount of 12.7%.
The borough however with the most significant falls in price was Marylebone, down 17.6% annually, closely followed by South Kensington with 15.9% falls.
The prime fringes continued to outperform more prestigious postcodes, notably King’s Cross and Islington, Putney, Barnes and Wimbledon. This was due to domestic buyers continuing to move to accommodate family life, striking the perfect live/work balance.
Mortgage rates put further pressure on buy-to-let landlords
The estate agent Hamptons found 43 percent of new buy-to-let mortgage deals were charging a rate of 5pc or more this month. This is a 35% increase from January. As a result, more than three quarters of new buy-to-let lending was on an interest-only basis so far this month, the highest level since October 2022.
AI boosts powers up Office space demand
British Land upgraded its earning guidance off the back of growing AI demand for office space, causing its share prices to rise 2%. Anthropic, one of the largest AI companies in the world, just took 158,000 sq ft of office space at One Triton Square in London
Crest Nicolson goes on the back foot
Crest Nicholson claims everything is just FINE, despite the developer needing to ask lenders to relax their parameters and expecting a reduction in the volume of sales to 1,400 to 1,500 units (previously 1,550 to 1,700 units). This comes alongside an expected reduction in land sales due to a loss of appetite.
Trump’s gas leak takes a match to housing costs
Trump’s hot air has inflated heating costs in the UK causing the annual contribution from electricity, gas and other fuels to rise from 0.05 percentage points in February 2026 to 0.13 percentage points in March.
Rental prices continue to swell
Rental growth continued to slow but tenants continued to feel financially squeezed. Average UK monthly private rents were estimated, by the ONS, to have increased by 3.4%, in the 12 months to March 2026. Rental growth was highest in Northern Ireland, up 5% annually in January while in England the North East dominated with 6.5% growth in the 12 months to March 2026. London however only saw growth of 1.7% as affordability restraints tethered further growth.
House prices remain on the move in affordable areas
A retrospective estimate of UK house prices back in February showed annual price growth of 0.8%. This came before the conflict in the Middle East kicked off, suggesting there was hope on the spring horizon for some regions of the UK. Not that Northern Ireland needed any, with growth up 7.5% in Q4, while it rose by 3.9% annually in Yorkshire and the Humber. For London though prices were down 3.3% annually, offering no reprieve for sellers. Moving forward UK house prices will remain at the mercy of a Middle East peace agreement and the rate at which rates reduce,
Foxtons profits from a strong rental market
The rental market keeps Foxtons in profit as sales revenue falls £5.7m when compared to Q1 in 2025. As a result of this the estate agency is cutting back 2% of its sales force or redirecting them to lettings. Here they continue to grow through further acquisitions in Milton Keynes and Birmingham, which has boosted their lettings books and management portfolio. This in turn has helped increase their financial service division where revenues rose 3% in Q1, predominantly from those looking to refinance. The scales remain tipped in favour of the rental sector, for now.
Golf courses under housing fire
Fore! Councils eye golf courses as an easy hole-in-one for development, to achieve housing targets causing mayhem on the green.
Overseas investors get an extra squeeze
Overseas investors who bought shares in companies that own homes in the UK, predominantly in London, will pay the mansion tax on top of the Annual Tax on Enveloped Dwellings they currently do. For those with properties worth £20m plus this could amount to £303,450 – I think we can safely say that this won’t be affecting the majority but the few. There is currently zero incentive to keep international money or minds in the UK.
Rates soften but remain volatile
Average 2 & 5 year residential mortgage rates have fallen from their recent peak of 5.90% and 5.78% to 5.81% and 5.70% respectively. Though welcome, this mild reprieve is significantly more costly to borrowers when compared to the sub 5% rates that were on offer in February. As it stands, this downward trajectory could prove fleeting should the eastern stalemate persist. The only certainty is nothing is certain.
That concludes this week’s UK Property News Recap – 24.04.2026. Any questions or suggestions please get in touch.
