More than 30% of home sales in England and Wales are now taking longer than 17 weeks to reach exchange as the housing market enters 2026 facing fragile confidence and mounting affordability pressures.
Propertymark’s latest Housing Insight report for December shows buyer registrations rising to an average of 74 per branch, while UK transaction volumes increased year-on-year to 105,730, up from 98,370 in December 2024.
However, supply is tightening, with just 6.4 new instructions per branch and average stock levels falling to 36 properties.
At the same time, 81% of homes are selling below asking price and viewings have dipped, underlining a price-sensitive market. The Bank of England base rate stood at 3.75% in December, while inflation rose to 3.4%, well above the 2% target.
LETTINGS OUTLOOK
In lettings, demand continues to outstrip supply, with six applicants competing for every available property.
Average UK rents were 3.9% higher than a year earlier, reaching £1,424 in England. Void periods remain tight at 3.1 weeks, while rental arrears have edged up.
Nathan Emerson (main picture, inset), CEO of Propertymark, says: “December’s figures highlight a sales market that is showing pockets of resilience but remains constrained by ongoing challenges.
“Buyer registrations improved, and sales volumes are higher than a year ago, pointing to underlying demand. However, transaction times remain unacceptably long, with over 30% of sales taking more than 17 weeks to reach exchange, and supply continues to soften.
“Falling stock levels and fewer market appraisals are limiting choice.”
“Falling stock levels and fewer market appraisals are limiting choice and contributing to a slower, more cautious market environment.
“Although the base rate has eased and mortgage lending remains broadly stable, inflationary pressures and wider economic uncertainty are still impacting affordability and confidence.
“As we move into 2026, clearer economic signals and policy stability will be essential to support both buyer commitment and smoother transaction flows.”
WE NEED CLARITY
He adds: “In the lettings sector, demand continues to significantly outpace supply, despite a modest uplift in available stock and fully managed instructions.
“Void periods remain relatively short, underlining how competitive the rental market still is, while rents continue to rise year on year, albeit at a slowing pace.
“Affordability pressures are becoming more visible, with rental arrears increasing and many landlords expressing concern around forthcoming legislative changes. Greater clarity around rental reform is urgently needed to reassure landlords and prevent further contraction in supply, which would only intensify pressures for tenants.”
STRETCHED AFFORDABILITY
Phil Spencer, founder of Move iQ, says: “For buyers and sellers, this feels like a market that’s active but fragile. More buyers are registering, but viewings have dipped, and a high proportion of properties are still selling below asking price.
“That tells us people are interested, but they’re being very price-sensitive and far less willing to overstretch themselves. Long transaction times are also taking their toll, increasing the risk of fall-throughs and adding stress to what is already a demanding process.
“While lower interest rates offer some encouragement, affordability remains stretched for many households, meaning buyers are proceeding carefully and sellers need to be realistic on pricing if they want to secure a sale.
TOUGH MARKET
He adds: “For renters, the picture remains tough. Demand is still far higher than supply, and although rental growth is slowing, average rents remain elevated across the UK. Short void periods show that well-priced homes are being snapped up quickly, leaving tenants with limited choice and little negotiating power.
“At the same time, uncertainty around the Renters’ Rights Act is making some landlords hesitant to re-let or expand their portfolios.
“Until there is greater clarity and confidence in the regulatory environment, renters are likely to continue feeling the impact of a highly pressured and competitive market.”
