Desperate to catch a break the UK Property Market continues to trudge along. Buyers’ and sellers’ motivations to move on are aligned but finding a happy medium when rates, outgoings, and taxes are against you requires some protracted negotiations. Developers continue to scale back completions while letting southern sites languish until they can make them stack. Meanwhile, landlords are over-pitching prices, in response to the Renters’ Rights Bill restricting bidding wars, hoping to cover more financial ground than last year. But with the other hand they are preparing to sign up to the new national landlord registration service that will hold them accountable. Welcome to another UK Property News Recap – 11.09.2026.
House prices slide under the summer sun
Under the glare of the August sun, house prices in the UK melted 0.2% on July’s efforts making the average house price on Lloyds Bank HPI, £298,468. Buyer caution prevailed leaving many properties languishing, exposed, on the portal shelves for longer. The stalemate between seller and buyer remains with buyers looking for a deal while sellers are reluctant to make a loss be it actual or perceived. The constant eye to the east and rising interest rates is keeping the market in check. Downward pressure however remains focused in the southern part of the country. House prices in the South East fell 1.6% annually and 1.5% in the Capital. Meanwhile, Northern Ireland continues to defy the odds with annual growth of +6.9% followed by Scotland with a +3.5% rise. In England, growth remained focused northward with 2.7% and 2% growth in the North East and West. Moving forward this pattern is expected to continue but will worsen if rates rise further. This will leave many sellers, not in need, to wait till the New Year while others will doggedly continue to list in search of a buyer creating opportunities for southern purchasers. Meanwhile, those looking to buy in the North, keen not to be outpriced will move at speed to secure their dream home.
Lenders struggle to garner buyers interest
A quarter full of change. Increased rates driven by the ongoing conflict in the East saw lending numbers retreat. According to the Bank of England, gross mortgage advances for buy-to-let purposes reduced 0.9pp from the previous quarter to 8.0% while mortgage advances for owner occupation decreased by 1.6pp from the previous quarter to 56.1%. First time buyers also pulled back but remained relatively consistent considering; their numbers falling only 0.1pp from the previous quarter to 27.3%. The only increase came from those needing to remortgage; many swallowing recent increases, then risk further rises causing the number of those remortgaging to rise 3.1pp from the previous quarter to 31.2%.
Mortgage arrears and possessions fall
Lender flexibility and higher wages have rescued many borrowers who were struggling to make their repayments; reducing the number of mortgage arrears and possessions overall.
Outstanding mortgage arrears and possessions cases fell 1.9% and 4.5% over Q3 while new cases also reduced down to 9.1% and 7.1% respectively.
Construction starts fail to get up off the ground
Civil work and non-residential projects turned up for work in Q3, according to Glenigan. Starts rose 23% and 6% respectively while residential new starts dwindled 15% on the previous quarter’s efforts. This left the value of underlying work (under £100 million) starting on-site during the three months to the end of August down 2% and 20% below last year’s levels. The building revolution remains dormant.
The UK housing market continues to tread water
According to Esurv, annual house price growth held at 1.8% in August, but monthly price growth, even in northern hotspots, displayed signs of fatigue with no region managing more than a 0.2% increase. Northern markets continued to pull up the national average growth rate while Southern markets weighted them down. Meanwhile, demand continues to favour semi-detached and terraced homes over flats and detached properties.
Pitching high to cover all bases
Landlords are advertising at higher rates as a result of legislation banning bidding wars. Asking prices may have risen 2-3% in some areas but agreed prices are more likely to be shy of 2%. Negotiation remains; legislation has only given tenants a ceiling. Raising it too high will only backfire on landlords, while tenants putting in offers too low when others are higher will only cause disappointment. So not much has really changed. Chaos remains.
Landlords to register or face fines
A national landlord registration service is to be rolled out from December 15th with full national registration due by the 14th of November 2027. This will require all landlords to register onto a national database, giving tenants greater peace of mind of a landlord’s legitimacy and accountabilty. In addition, HM Revenue and Customs’ Valuation Office will become responsible for decisions on challenges to rent increases in England, helping people resolve rent disputes more quickly.
Housing market mood music remains on a loop
In August’s RICS Residential Market Survey, surveyors’ outlook appeared marginally improved. Agreed sales inched up and nationally house prices remained broadly stable. Activity was predominantly more buoyant in Northern Ireland, the North West and Wales. These areas helped maintain the national average house price while London and the south remained unmovable from their unaffordable slump. New instructions limped forward but seller caution has many holding back till after the budget and 2026 is in everyone’s rear view mirror. The hope being, a peace deal is agreed and there is greater certainty around what the new Labour line up are going to do.
As for rents, RICS surveyors predicted rents to continue to rise by 3% over the next 12 months, in direct response to dwindling supply levels and increased demand.
Demand picks up after the summer hiatus
As the sun receded buyer demand advanced. The start of the autumn term brought hope to many an estate agent as enquiries rose 5% on Rightmove. Many buyers will be surveying the portal’s shelves to see what remains, what’s reduced, re-listed or newly listed and at what level. Hopes at the beginning of the summer for a ceasefire that would lead to lower rates come September have been crushed, leaving many needing a discount to make their mortgage offer stack. The desire to buy remains but not at any cost.
Mansion tax implementation questioned
The Mansion Tax hasn’t yet been implemented but it’s already struggling to make its deadline. Civil servants unable to make it four days into the office for fear of “burnout and sickness absence” have Whitehall worried about delivery times. To compensate for this an additional 300 staff will be cobbled together from some back office or via new hires to concoct a valuation on something they know next to nothing about. When the tax bell tolls – homeowners will then have six months to appeal, which will take up more of a valuer’s valuable time increasing the back log. Messy? Very
Construction output falls behind, again
New starts play second fiddle to existing housing issues. Construction output fell by 0.5% in the three months to July 2026, compared with the three months to April 2026 . In July, growth only came via repair and maintenance up 0.8%; largely due to private housing while new work fell 0.4%.
Developer Berkeley asks the government for more
A lack of buyers has the London based developer Berkeley calling for the government to do something to get people moving so they can build…and, well, profit. Some of the group’s brainstorming ideas involve reforming stamp duty, capping the levy at 1% for first-time buyers and down-sizers, and scrapping a 5% investor surcharge, which was originally implemented to deter investment and bolster first time buyers. With neither overeager to step up while global economic uncertainty remains; the government, if it wants to boost housing numbers, will need to do something to keep developers on side. What that is remains to be seen.
That concludes another UK Property News Recap – 11.09.2026. Any comments or questions please get in touch.
