BLOGS

The UK housing market is showing renewed vigour in early 2026, with Rightmove reporting that average asking prices reached £371,042 in March—a signal that sellers are feeling increasingly confident about market conditions. This uptick comes as mortgage rates continue their downward trajectory, validating earlier forecasts from Savills that predicted improved affordability would translate into stronger pricing.

Mortgage rates drive market momentum

The story behind the headline is one of improving borrowing conditions. After years of elevated interest rates that squeezed affordability and dampened transaction volumes, lenders have begun offering more competitive products. This shift has emboldened sellers to list at higher prices whilst also bringing hesitant buyers back to the market.

For investors and developers tracking the market, the key question is whether asking prices will translate into completed sales at similar levels. REalyse transaction data shows that properties are typically spending between 65 and 109 days on market before completion, with semi-detached and terraced homes in England and Wales moving fastest at around 65-81 days.

Regional variations reveal divergent market conditions

Beneath the national headline, the UK's housing markets are performing very differently. Scotland is emerging as a consistent performer, with terraced properties up 2.1% year-on-year and semi-detached homes gaining 1.2%. Welsh flats have also shown resilience, recording a 2.2% annual increase.

England presents a more complex picture. Detached homes in England remain the highest-value segment at an average sold price of approximately £532,000, though prices have softened marginally by 0.3% compared to the previous year. Semi-detached properties have held relatively steady at around £330,000.

The flat market in England warrants particular attention. REalyse data indicates that average sold prices for flats have declined by over 12% year-on-year, reflecting ongoing challenges in the leasehold sector and continued fallout from building safety concerns affecting certain developments. This divergence between houses and flats is a trend that valuers, lenders, and investors should monitor closely when assessing portfolio exposure.

Transaction volumes and market liquidity

While prices are stabilising or rising in many segments, transaction volumes remain below historical norms. REalyse analysis shows that the current 12-month period has seen notably fewer completions than the preceding period across all regions and property types. This suggests that whilst asking prices are rising, the market is operating with reduced liquidity.

For estate agents, this environment requires accurate pricing from the outset. Properties that are correctly valued using robust comparables data are selling within reasonable timeframes, while overpriced listings risk extended marketing periods. Days on market figures currently range from around 65 days for Welsh semi-detached properties to over 100 days for Scottish detached homes and English flats.

Outlook for the remainder of 2026

The combination of lower mortgage rates and constrained supply should continue to support pricing through 2026, though regional and property-type variations will persist. Scotland and Wales appear well-positioned for modest growth, while England's market—particularly for flats—may take longer to recover fully.

For property professionals using REalyse, access to granular transaction data, asking price trends, and area-level comparables will be essential for navigating these divergent conditions. Whether appraising a development opportunity, underwriting a loan, or advising a client on pricing strategy, evidence-based analysis has never been more important in a market where national headlines can obscure local realities.