If you are looking to sell your home this year, you are probably getting a little excited. We don’t blame you. With mortgage and general affordability improving, budget changes confirmed and the hope of a new year and fresh beginnings, market predictions are focused on a strong first half of 2026.
This is encouraging news. This time last year, we witnessed a surge of activity as buyers sought to buy before the stamp duty changes at the end of March. This year, there’s less of a rush to buy, with demand mirroring that of 2024 but 9% down on the pre-stamp duty rush seen last year, according to Zoopla. However, the same confidence to buy is mostly apparent.
January witnessed a surge in house prices, up by 2.8% on December in a rebound that followed the budget announcement and 0.5% ahead of the same time last year. Prices were also buoyed by December’s base rate cut by the Monetary Policy Committee to 3.75%. Although it was held steady at February’s Monetary Policy Committee meeting, the vote was split 5-4 and further cuts are expected later this year.
Growing confidence
Additional activity will be apparent as confidence and affordability continue to improve, with average mortgage rates now at their lowest level since 2022 and mortgage affordability criteria also relaxing. However, the growth will be somewhat muted, with price rises of around 2% expected for the year as a whole.
This is because the number of properties available for sale remains at its highest since 2014, according to Rightmove. The number of properties for sale in London is even higher, up 14% on last year, according to Zoopla. Demand in the capital and south-east was also more heavily impacted towards the end of last year by the anticipated property tax changes within the budget, since property is more expensive in these areas.
More buyers and sellers
Although more buyers are now emerging, so too are additional sellers. The imbalance caused by this twelve-year high means that realistic pricing remains crucial in such a price-sensitive market, particularly as a third of properties for sale are currently seeing a price reduction from their original asking price, according to Rightmove’s research.
Realistic pricing is a necessity
Realistic pricing will help you capture buyer attention and secure the price you want and need, without the delay and uncertainty of negotiating price. Although you may well be sitting on a sizeable capital gain on your existing south-east home, you will need to consider what local buyers are willing to pay as you budget for your next property. In addition, ensuring your property offers everything a buyer wants through effective staging and obvious repair and maintenance will give potential buyers even less reason to push your selling price down.
For more information on how we can assist you on your sales journey, please contact one of our branches in Essex, London or Hertfordshire today. We also offer a free and instant online valuation to give you an idea of how much your home could be worth on the current market.
