📊 UK Property Market Outlook 2026: Strong Demand, Rising Transactions & New Opportunities for Off‑Plan Investors

Stuart Clark
Feb 13
2 min read

The UK property market has entered 2026 on a remarkably strong footing, with transaction volumes, buyer demand and new listings all showing encouraging momentum. Despite facing economic headwinds throughout 2025, the market still recorded nearly 1.2 million completed transactions — the highest figure in three years.

For investors, particularly those focused on off‑plan property opportunities, these trends paint a positive picture for the year ahead.

🚀 Market Performance Recap: 2025 Ends on a High

Although 2025 was marked by inflation pressures, interest‑rate uncertainty and Stamp Duty adjustments, the property sector remained surprisingly resilient.

Data shows:

Nearly 1.2m transactions completed, despite a turbulent economic backdrop
Buyer and seller activity strengthened in Q4, even amid Budget‑related uncertainty
Mortgage approvals remained close to pre‑pandemic levels, supporting ongoing demand

Lenders also noted favourable shifts. Halifax reported that house price‑to‑income ratios improved to their lowest point in over a decade, boosting affordability heading into 2026.

📈 Early 2026 Trends: Buyer’s Market with Elevated Supply

January and early 2026 data highlights a notable shift: supply has risen sharply.

New property listings are 23% higher than the 10‑year average
Larger stock levels — both new and carried over from 2025 — mean buyers currently have more choice
Time on Market is rising, reflecting increased competition among sellers

For off‑plan investment companies like City & Countrywide, this creates a compelling environment: developers are motivated, stock is available, and investors can secure discounts or incentives while maintaining attractive long‑term yield potential.

🏡 Price Movements: Modest Softening But Strong Underlying Stability

The market experienced a mild price correction at the close of 2025:

Rightmove reported a 1.8% drop in average asking prices in December, ending the year 0.6% lower overall.
Flats underperformed other property types, rising only 18% over the past decade compared to 41% for terraced houses, partly due to weaker London performance.

However, the broader picture remains steady:

Zoopla reports 1.2% annual price growth, with strong demand returning following the Autumn Budget pause.
Nationwide described the 2025 market as “resilient”, with first‑time buyers forming a large proportion of transactions.

🔮 Forecast for 2026: Positive, Stable & Investor‑Friendly

Multiple major indices project modest but healthy growth:

Zoopla forecasts 1.5% house price growth and approx. 1.18m transactions in 2026
Rightmove expects prices to rise by around 2%, driven by improved affordability and strong stock availability
E.surv notes a return of market confidence following Budget clarity, although prime London areas remain sensitive

For investors seeking predictable income streams and long‑term capital growth particularly in off‑plan, 2026 presents a strategic moment to act.