This week many are seeing early signs of a market about to bloom. With interest rates on the slide, and a base rate cut on the horizon, many buyers and sellers are hoping to watch the sun set on 2026 from their new home. Likewise, developers are hopeful that further government concessions around affordable housing will enable them to build on their numbers, labourers permitting. Meanwhile John Lewis “knowingly” uncoupled from the 10,000 build-to-rent homes they once planned and Unite fell out with its shareholders after students found their thirst for knowledge quenched leaving their numbers deminished. However office development was on the rise as corporations jostled over new spaces to entertain their employees. Welcome to this week’s UK Property News Recap – 27.02.2026
Rate cut to “spring” market into bloom
Expectations are high for a 0.25pc base rate cut in March as a result of inflation falling along with many people’s job prospects. This, Knight Frank believes, will lead to a cut just in time for the market to “spring” into action. The hope is that as we progress through the year rates around 3% will bloom enabling the market to move on from the four year quagmire it’s been stuck in.
National strategy demanded to bring empty homes back into use
An open letter from housing sector leaders calls on the government to launch a national strategy to bring empty homes back into use. Many social homes have been mismanaged and fallen into repair in London. The cost of fixing them appears to be less appealing than getting money to build new ones. The thing is, if authorities couldn’t look after the old stock, what is there to suggest they’ll be able to maintain the new stock when they age? Money is in short supply: fixing existing stock may unravel a litany of other issues but knocking it down and starting again is even more costly when factoring in the additional strain of rehousing during this time. A balance needs to be met but it will come down to money and ability. Neither of which are to be found in abundance.
Zoopla’s new homes win
Another success story for the underdog portal that is giving Rightmove a run for its money. Zoopla announced its acquisition of newhomesforsale. This will strengthen its position within its new homes market while enriching their overall data and insight in the sector.
Students differing
Student housing provider Unite watched as their share price tumbled 10.3% in reaction to their annual trading update. This revealed a reduced international thirst for knowledge in the UK as only “68% of beds had been reserved for 2026/2027, down from 71% and 79%, respectively, at the end of the previous two years.”
A lack of skilled construction works stalls development
Another missing bolt in the government’s plan to “build, baby build…” A new report from the Construction Industry Training Board found that there are fewer people in the industry. Brexit is seeing off employees we dearly need. This alongside only 21% of construction businesses employing apprentices due to cost and ADMIN woes means the chances of hiring anyone with experience is slim. Without an uptake in training programs and a general interest in a career in construction, building will further stall.
Microsoft’s property hunt in the Capital
The call of the office grows louder in the Capital but to get staff to engage the work space has had to evolve into an accessible wellness centre-come-playground for adults. This comes at great financial cost as rents and fit-out costs have spiralled over the past few years. Regardless, it is clearly considered money well spent for corporations who want to keep their top performers from moving to a better playground with a rival firm.
New listings come into bloom
Encouraged by falling interest rates and budget clarity, sellers are listing with renewed hope that 2026 is the year they move on. Listings are already up 6% on last year according to Zoopla but expect a significant increase with the next base rate cut, which should, we hope, coincide with the weather improving. This increase will keep price growth in check in southern regions while more affordable northern regions will continue to register house price growth.
With half the stock proving cheaper to buy than rent; the incentive to move onto a rung is high especially with first time buyers. At the same time, investors who once focused on the capital have turned northwards on the hunt for attractive yields for minimum outlay. This has these two buyers pitted against each other over limited stock; further driving up house prices.
Thanks a “bunch.” Property prices bunch under mansion tax thresholds
Buyers and sellers are psychologically trying to outfox the valuation office to get the house they want or want rid off. Yet any home £100,000 or so under a threshold won’t stay that way for long and anyone buying at the threshold who’s worried about paying an extra £2,000 probably can’t really afford it. Hamptons found “The number of homes going on the market at between £1.8mn and £2mn rose by 5.6 per cent in the two months following the Budget, compared with the same two months in the previous year. At the same time, the number put on sale for between £2mn and £2.2mn fell by 6.5 per cent.”
John Lewis abandons buy-to-let market
For all life’s “retail” moments. 10,000 buy-to-let homes are discontinued by John Lewis in favour of investment in “modernising stores, enhancing digital platforms and improving supply chains.”
John Lewis “knowingly” resisting costly build and management of rental stock as they realise they can’t afford to undersell.
Developers’ affordable target to be moved
The government considers letting developers grease councils’ needy palms to avoid building social and affordable (only in name, rarely actually) homes. Residential development was put on hold last year as a result of high interest rates and budget uncertainty. With each government concession developers will slowly and then steadily build on their numbers. Consideration for homes built in flood risk areas or the desperate need for social and “affordable” homes will be disregarded by the government in favour of reaching their “termly” target.
The over 55s were on the move in Q4 2025
The number of loans advanced rose 15.1% year on year, up 20.5% in value to £6.8bn compared with the same quarter a year previously according to UK Finance. This is a step in the right direction but shows movement remains dependent on affordability and availability of relevant stock.
Making all the right moves for shareholders…
Rightmove’s audited results for 2025 show a 9% rise in revenue, 12% rise in operating profit and underlying operating profit up 9%. The portal’s investment in AI looks set to pay dividends along with developers need to be noticed.
With the second half of the year expected to be stronger than the first – further revenue growth of 8-10% is expected in 2026 and 20-30% growth from Commercial Property, Mortgages and Rental Services!
That concludes this week’s UK Property News Recap – 27.02.2026. Any questions or comments do please get in touch.
