This week saw the launch of many consultations on promises that have yet to be delivered. Leaseholders learnt the government needed help with calculations on leasehold reform after two years of naval-gazing. The Mansion Tax was open to further tinkering to capture more homes before implementation, and development numbers remained low despite big promises. Interest rates came under renewed fire leading to a retreat on June’s more favourable rates which will further hit the constipated sales market. Rents however edged cautiously upwards as renters prepped for the end of the summer holiday season and Andy Burnham prepared to take up his role of PM promising to be “unashamedly Labour.” The tides they are a changing. Welcome to another UK Property News Recap – 17.07.2026.
Mansion tax threshold to fall
The Mansion Tax hasn’t even been implemented yet and it’s already being (potentially) tweaked to include homes over £1.5m. Increasing the government’s haul by 102%. For all those skirting under thresholds… by 2031, when homes are due to be revalued, more homes will be drawn down from increasing the total taxable properties to (potentially) more than 350,000. The potential, that word AGAIN, to increase this tax as and when required is a further twist of the knife in those who worked hard to afford a HOME. Currently, all this POTENTIAL tinkering is hijacking certainty and values and will continue to, until the government has a considered plan – ideally one that isn’t solely focused on taking from the South to pay for the North.
Landlords hold stock until market conditions improve
The fear of 12 months’ financial abstinence if a rental property doesn’t sell has landlords retreating until market conditions improve. According to Hamptons, the share of homes listed for sale that were previously rented dropped to 9.2% from 11.3% last year. This indicates the ‘exodus’ was predominantly driven by rising mortgages and taxes, leaving more portfolio landlords at the helm. Many of these have pivoted northwards to chase higher yields, leaving flats, especially in the Capital, for others to navigate. Unfortunately, 51% of apartments remain unsold in London leaving many ex-landlords financially exposed until a buyer can be sought. This is proving tricky where high service charges, ground rent and building safety issues are prevalent. Discounting usually helps but currently has little sway over savvy and cautious buyers.
Interest rates fell but look set to retreat as the ceasefire ends
Ceasefire talks had swap rates on the move resulting in the fastest fall in mortgage rates in two years in June. This reprieve saw average fixed residential mortgage two- and five-year fixed rates falling by 0.16% and 0.11% respectively. Product choice grew but their shelf life was short, with many deals being repackaged within two weeks. This has helped some but for most rates remain significantly higher than they were in January 2026. With the strait still in jeopardy recent rate declines could just as quickly retreat leaving those facing renewals in hot water.
Overpromising without the funds could be another Labour housing promise broken
Economists estimated, to restore council housebuilding to 1950s levels, £20bn a year would be needed. The government’s existing £39bn Social and Affordable Housing programme if redirected to social housing would need an additional £9bn to build the equivalent 300,000 homes over a decade. To achieve this more debt, cuts or taxes would be required. None of which will be palatable. Words and good intentions are great but mean nothing if they fall short.
FCA find leaseholders continue to be ripped off by building insurance
Insurers work around accountability to ensure returns and not the welfare of homeowners, despite rule change in 2023. This has resulted in a further “review” of the flawed system.
Equity loans rise along with interest
Equity loans are on the rise as the cost of living climbs and the desire to enable younger generations to step up on the ladder now rather than later increases.
The issue is many assumed at the time that house prices only ever go up. The amount of compound interest accrued on these loans is stacked heavily in favour of the lender leaving any passing “gift” diminished as lenders draw down rates linked to government bond yields, wiping out generational wealth.
If you want to end your days comfortably, and so you should. and your wealth is predominantly in your home, equity loans can enable this if renting or downsizing aren’t an option. The kicker is it comes at a cost but not one you will need to worry about. You earn it – how you spend it is your choice, not your kids.
Seasonal rental price rises return
Average asking rents rose in Q2 setting new records but rises remain tempered by affordability. The average advertised rent for homes outside London rose by 1.9% in Q2 to £1,397 per calendar month, 2.3% higher than a year ago. Northern regions dominated growth with the North East and North West both recording annual rent increases of 4.1% versus 1.5% in East Midlands and East of England. In London, rents jumped 2.0% to £2,791 per calendar month, up 2.9% on last year’s efforts. The number of newly listed homes available to rent nationally fell 1% against 2025 levels suggesting some Landlords are holding on to reliable tenants than face the unknown. At the same time average national enquiries per property dropped from 11 to 10 annually but remained up on pre-covid levels. Despite rental price rises the market appears less frenetic and more measured giving tenants more time and choice.
PCL prices fall in Q2 2026
Q2 wasn’t kind to prime London postcodes. Based on Lonres data; Mayfair and St James’s sellers refused to heed price warnings leaving 85% of properties languishing on the market for over three months as the average discount in the borough rose from 12.7% in Q1 to 15.3% in Q2. The same was true for Knightsbridge; 79.8% of sellers here did not make a sale in the first three months leaving discounts to rise to 15.5% from 10.6% . Marylebone fared little better as the annual change in achieved price fell by a dramatic 17.6%. On average roughly 50% of properties needed to reduce the listing price meaning the other half either priced it right or retreated offline or to the short let market.
Matthew Pennycook launches a consultation on how to implement leasehold promises
The government, the last one..promised to do this in 2021 and got Royal Assent in 2024. Labour then came into power the same year and PROMISED to ACTION this. Now in 2026…the breaking news from Matthew Pennycook IS…we need TWO consultations to discuss how we are going to ACTUALLY DO THIS. Not knowing how you are going to calculate the price of a statutory lease extension or freehold acquisition provided for by the 2024 Act or the amount leaseholds should pay towards landlords’ costs TWO YEARS ON is crazy.
Foxtons’ profits take a hit
Despite £4.5m of savings from staff layoffs, Foxtons H1 operating profits were adjusted down from £12.3m last year to £8.5m. This was largely due to a sluggish sales market and a £3m fall in rental revenues predominantly due to student tenancy terminations in May and June.
Developer Crest Nicholson plunges into the red
Crest Nicholson desperately tries to renegotiate with lenders as adjusted operating results swung from an £11.9m profit to an £11.9m loss. At the same time, net debt also doubled to £142m from £71m a year ago. Trouble abroad is leading to a troubled landscape for developers to navigate.
Consultation on how to reduce development opposition
Another consultation is underway…this time on how to not consult others. The drive to bulldoze through building opposition to enable development comes from a desire to build, but not to build relations
That concludes another UK Property News Recap -17.07.2026. Any comments or suggestions please get in touch.
