Property Market Update – What Buyers and Sellers Need to Know
The premium property market has started 2026 in better shape than many of the headlines might suggest. Read on for our insights on the premium property market in January 2026.
While global and domestic political uncertainty has created a cautious backdrop, the data from January tells a more balanced story, particularly for those thinking of buying or selling higher value homes.
A market navigating uncertainty
The year opened amid significant global instability. International political tensions and ongoing economic concerns have unsettled wider financial markets. Closer to home, speculation around political leadership and fiscal policy has also created unease. Historically, moments of political change or uncertainty have caused short term dips in buyer activity, particularly around mortgage approvals and new registrations.
However, history also shows that these slowdowns tend to be temporary. The housing market has consistently absorbed previous political shocks and found its footing again. January’s figures suggest that pattern is repeating.
Supply remains strong
One of the clearest themes from January is the strength of supply. Stock levels are up 6 per cent year on year and sit 7.5 per cent above the January average for the past five years. New listings are up 8 per cent compared to last year and an impressive 27 per cent above the five year January average.
In simple terms, sellers are not being deterred by wider uncertainty. Many homeowners are continuing with their plans and bringing property to market with confidence.
Demand is steady, but more measured
Sales agreed are down 6 per cent compared to January 2025. On the surface, that may appear concerning, but last January was unusually busy due to buyers racing to complete before a stamp duty deadline. When compared with longer term trends, sales agreed are still 5.5 per cent above the January average.
This suggests that while activity has softened from last year’s exceptional levels, demand has not collapsed. Buyers are still active, but they are being more considered.
Pricing is the key dividing line
The clearest message from the January data is around pricing. Price reductions are sitting 42 per cent above the January average, and withdrawals are also significantly elevated. This reflects a gap between seller expectations and buyer willingness to transact.
The consequences of overpricing can be significant. Properties that undergo price reductions are less likely to sell, take longer to complete and are more likely to fall through. In contrast, where homes are launched at realistic prices, deals are holding together. Fall throughs are down 17 per cent year on year, suggesting that sensibly priced homes are progressing smoothly.
The message is straightforward. When pricing is right from the outset, the chances of a successful transaction increase dramatically.
The bigger picture for premium property
The overall value of the UK housing stock continues to rise, although growth has slowed. There are currently around 673,000 properties valued at £1 million or more across Great Britain. While that figure has dipped from its 2022 peak, million pound homes remain far more common than before the pandemic.
Looking ahead, forecasts suggest prime property values are expected to increase by 1.5 per cent during 2026 and by 17.6 per cent by the end of the decade.
The overall verdict
The premium market has started 2026 in relatively healthy condition. Supply is strong, demand remains above longer term averages and realistic pricing is being rewarded.
In a climate shaped by political uncertainty and cautious buyers, success belongs to those who approach the market with clarity and realism. For sellers, that means pricing thoughtfully from the start. For buyers, it means recognising that well priced homes are attracting committed competition.
If you are considering your next move in 2026, understanding these dynamics will help you make informed and confident decisions.
Credit: Simon Gates - Opening The Gates
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