The housing market started 2026 on a steady footing with sales activity picking up after the festive slowdown but rental shortages continuing to put pressure on tenants, according to the latest Housing Insight report from Propertymark.
The data for January shows a modest recovery in sales momentum, with viewing levels rising and more sellers preparing to list, while the lettings market remains defined by strong demand and limited supply.
On the sales side, the average number of viewings per available property rose to 2.2, while market appraisals climbed to 21 per branch, suggesting more homeowners are considering selling as the year begins.
The number of sales agreed also edged higher to an average of 6.3 per branch, although most homes are still achieving below the asking price.
STABILISING MARKET
Nathan Emerson (main picture, inset), CEO of Propertymark, says the figures point to a market that is stabilising rather than accelerating.
“January’s figures highlight a housing market that is gradually regaining momentum following the festive period. While the Bank of England base rate remains at 3.75% and inflation still above target continues to influence borrowing costs and consumer confidence, we are seeing encouraging signs of resilience across both the sales and lettings sectors.
“Viewing numbers rising to an average of 2.2 per property, alongside an increase in market appraisals to 21 per branch, suggests that many sellers are beginning the year with renewed confidence and are preparing to bring homes to market.”
However, affordability remains a constraint, with buyers continuing to negotiate on price and taking longer to commit to purchases.
LETTINGS IMBALANCE
In the lettings market, the imbalance between supply and demand remains the dominant theme. The average branch had just 12.9 properties available to rent, while new tenancies agreed averaged 8.57 per office, with around seven applicants competing for each home.
And Emerson wars that the shortage of rental stock is likely to persist.
“Within the lettings market, demand continues to outstrip supply… Although stock levels have edged slightly upward, supply remains constrained, and this imbalance is likely to remain a key challenge for renters and agents alike throughout the year.”
Phil Spencer, founder of Move iQ, says that the figures reflect a market where activity continues but caution remains.
“For many buyers and renters, the start of 2026 still feels like a balancing act between opportunity and affordability… What we are seeing in this data is that people haven’t stopped moving, but they are being more measured in their decisions.”
He adds that competition for rental homes remains intense, meaning preparation is essential for both buyers and tenants as the year progresses.
