Lenders tried to drum up business this week, dropping their rate offerings, hoping their flash sale will attract more buyers. Developers will be hoping this works as drab trading results have led to a reluctance to get “started”, especially where flats were once planned. Meanwhile, prime London rental tenant demand weakened as stock levels fell but across the country demand is growing – hindering any hopes of rental growth stalling. In the sales market, RICS surveyors are seeing glimmers of life that have the potential to blossom as we work through the year. Welcome to another UK Property News Recap – 13.02.2026
Lenders try to galvanise more potential first time buyers
A survey, conducted by lenders keen to win business, said: “47% of people who were keen to buy had never spoken to a lender or mortgage broker to assess their financing options. But 67% said they could make a purchase sooner than they had thought, after they were shown financing options.
The overwhelming noise has made homeownership look a bit like a scene from Raiders of the Lost Ark, problems writhing ready to bite at any moment. This has deterred some who may perpetually be waiting for stability. There are issues and there is always some risk when buying, but the alternative doesn’t come without its own problems. If you choose wisely and don’t overextend, having a place that you can call your own should feel like you’ve come home.
Developer updates show resilience but no ease
The latest trading update from Bellway showed a moderate increase in selling price alongside a 2.7% rise in completions. However, moving forward buyers are reserved about reserving a new home which is why the developer is calling on the government, cap in hand, for more financial support for first-time buyers.
Barratt Redrow’s report covering the 26-week period ending the 28 December 2025 showed a 4.7% uplift in completions when compared to the same time the year before. The group is “working towards” but remains reliant on economic stability and a strong spring market to achieve the 17,200-17800 homes expected to complete in 2026. For investors though the constant reduction in underlying profits means they will be expecting a significant improvement from the current status quo to remain invested.
Buy-to-rent sector to get a London boost
The Greystar (not to be confused with the Deathstar) are in “talks” to buy 900 London flats in Elephant and Castle. If successful it would be the biggest “build-to-rent” deal in the UK. Whilst affordability remains a struggle in the Capital and the appetite for new build apartments is low, the build-to-rent sector will flourish but could prove costly to tenants over time.
Prime London rental tenant demand weakens as stock levels fall
Tenants were first out of the New Year gates, keen to secure a home after a post-budget hiatus. Now demand has fallen to 4% below the 5 year average along with the number of tenancies starts, which fell 12% in central London. This lack of demand is outweighed by the reduction in stock, which is reduced by a third compared to its pre-pandemic level in January 2019 as landlords pull the rip cord.
RICS Residential Market survey shows hope is on the horizon
Gloomy reflections turn brighter as RICS surveyors forecast fairer weather will bring forth new stock, drawing out buyers from their hibernation in the not so distant future. This month, those surveyed felt the market was on the turn. Activity picked up along with prices, which appear to be stabilising while continuing to flourish in certain, northern centric areas. Southern regions, along with the capital, continue to battle affordability issues but even here, things are clawing their way back from the budget pit they were freefalling into at the end of last year.
Sellers will be encouraged by this release but should remain grounded. The amount of stock waiting to spring forth will provide plenty of options for buyers to pick and choose from keeping prices in check.
In the rental sector demand picked up after Christmas but stock levels are yet to be replenished, leaving any hopes the New Year would bring rent reductions on hold.
Where to buy when you haven’t found the one
Not found the one but want to get on the property ladder? Zoopla has broken down the most affordable areas for singletons. These areas are generally more affordable for a reason…Dare I say, the desire to live there isn’t overwhelming but if a home comes before love head to Aberdeen or Sunderland if you want some change left over for a date. Who knows, your neighbour could be available.
Construction stalls again
Budget concerns stalled construction output by an estimated 2.1% across 7 of the 9 sectors in Q4 2025. New work and repair and maintenance both fell by 2.6% and 1.5%, respectively but it was new housing, which fell the hardest down by 3.6% according to the ONS. Overall development confidence remained firmly in the ground as the year ended.
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Arrears and possessions fall
Many manage to get out of tight squeeze but others remain on the wrong side of the borrowing track. Homeowner mortgages in arrears of 2.5 per cent or more fell 4% to 80,490 in Q4 compared to Q3. This downward trajectory was mirrored in the buy-to-let sector, mortgages here fell 9% to 9,520. Possessions also fell; down 13% and 14% for homeowners and investors respectively in Q4.
Rightmove AI search enhancements
Property search scrolling done for you…Rightmove has spent some of its loose change on enhancing AI-powered conversational property search. This is supposed to highlight the properties you want to see rather than all the others you don’t. Bet you still scroll though…
Rates are a-changin’
The lender gloves are off: Nationwide is reducing rates by up to 0.16% across all their mortgage products. Their lowest lightweight rate will now be entering the ring at 3.54%. Many others will no doubt step up, eager to contest this, hoping to win over some business before things properly kick off in spring.
As is, lenders are already getting on the low-deposit bandwagon: the number of deals at 95% of a property’s value has increased from 274 in 2024 to 537.
Converted office block numbers fall
The appetite for converted office blocks has stalled. In 2016-17 18,000 homes were converted vs 5,154 in 2024-25. This is due to multiple reasons, largely the desire for flats has reduced, the cost of converting them well reaps little financial reward and anything decent is blocked via article 4.
That concludes this week’s UK Property News Recap – 13.02.2026. Any comments or suggestions, please get in touch.
