Latest Property News | Warwick Estate Agents

Details: Published: 15 January 2026; Hits: 219

The UK housing market remained subdued at the end of 2025, but sentiment is showing signs of improvement as expectations for sales and prices turn more positive following a period of reduced political uncertainty.

The latest RICS UK Residential Market Survey shows buyer demand and agreed sales remained in negative territory in December, reflecting a market that has been weak for much of the year. New buyer enquiries recorded a net balance of -24%, while agreed sales stood at -19%. Both indicators improved modestly on the previous month, suggesting the pace of decline is easing.

Forward-looking indicators showed a clearer shift in sentiment. Sales expectations for the next three months rose to +22%, the highest level since October 2024. Looking twelve months ahead, a net balance of +34% of respondents expect sales volumes to increase, more than double November’s reading. Surveyors cited easing interest rate expectations and the removal of Budget-related uncertainty as key factors supporting confidence.

Supply conditions stabilised, with new vendor instructions flattening to a net balance of 0% after several months of decline. While this indicates market conditions have stopped weakening, low appraisal activity suggests any increase in available stock is likely to be gradual.

House prices continued to fall at a national level, with a net balance of -14%, although the pace of decline moderated. Regional differences remain pronounced, with sharper falls reported in London (-42%) and the South East (-32%), while Scotland and Northern Ireland continued to record price growth. Short-term price expectations have moved close to neutral, and a net balance of +35% of respondents now expect prices to rise over the next year, the most positive outlook since late 2024.

Tom Bill, head of UK residential research at Knight Frank, commented: “The renewed confidence seen in recent weeks underlines the rule that the less a government intervenes in the housing market, the closer it operates to full capacity. The combination of clarity around taxation and the prospect of further rate cuts means demand in the first weeks of January has been stronger than normal. That doesn’t mean the market is now on an upwards trajectory and domestic political risks could still undermine sentiment over the next six months. For now, the absence of bad news means that some of the demand that became pent up last year is being released and we expect UK prices to grow by 3% this year.”

The lettings market remains under pressure. Tenant demand weakened further in December (-27%), while new landlord instructions stayed deeply negative (-39%), underlining persistent supply constraints. Rents are expected to keep rising, with average rental growth forecast at around 3% over the next twelve months.

Bill added: “Tenant demand has been relatively strong in the lettings market following the Budget and the clarity it brought. However, supply is still under pressure as more landlords sell up due to the proliferation of red tape and taxes in recent years. The big test in 2026 will be the Renters’ Rights Act, with some prospective landlords sitting on their hands to watch how it plays out and whether the court system becomes overwhelmed. As supply comes under pressure, it means upwards pressure on rents will persist, which is exactly the sort of unintended consequence that governments worry about when they design new legislation.”

While activity on the ground remains subdued, the December survey suggests the market may be turning a corner. With interest rates expected to fall further and confidence rebuilding, the foundations are being laid for a more active start to 2026.

RICS’ head of market research and analysis, Tarrant Parsons, commented: “The UK residential market remains in a prolonged soft patch, with December’s survey recording a sixth consecutive month of negative momentum in buyer enquiries. That said, there are tentative signs of a shift in sentiment beneath the surface.

“Near-term sales expectations have strengthened, and the twelve-month outlook has edged into more positive territory. The key test for 2026 will be whether borrowing costs ease on a sustained basis. If so, this could provide the catalyst needed to drive a recovery in buyer demand.”

Details: Published: 17 December 2025; Hits: 244

The latest house price index from the website Home claims that the normal sales market dynamic has been grossly distorted by a late autumn Budget and the Bank of England’s pending decision on interest rates.

It says many potential vendors, fearful of a tax-grabbing budget, sat on their hands rather than enter the market, preferring to wait until the dust settles. The result of all this unnecessary uncertainty was that 29% fewer properties than expected entered the market in November.

The upshot of this dramatic reduction in supply is a steep fall in the number of properties on the market. In the near term this will support home prices which have been under heavy pressure recently due to a glut of unsold stock.

Seasonal expectations are such that agents’ portfolios will shrink further before swelling with a surge in new listings during January.

Buyer demand in the New Year will depend in part on the next Bank of England (BoE) interest rate decision tomorrow, says Home. A cut of 0.25% is currently priced in by the markets and this move to lower borrowing costs would be a welcome early Christmas present for UK property sales. On the other hand, should the BoE be hawkish about inflation risks and hold the base rate at 4%, this would create significant negative sentiment among hopeful buyers.

Home prices continue to slide as per seasonal expectations. During the last month prices fell in all English regions (except the South West where there was no change) and in Scotland. Only Wales recorded a small rise during November.

The notable glut of unsold stock on the market that formed over the summer months is now reducing rapidly. Thanks in part to vendor hesitancy, the total portfolio count for England and Wales is now just 1.2% more than in December 2024. Total stock dropped by 40K during November and this large reduction will help to support prices while it lasts.

The North West is the top regional property market growth leader with a year-on-year gain of 2.6%, followed by the West Midlands. Meanwhile, London remains the worst regional performer with an annualised decline of 0.7%.

Typical Time on Market (TTM) for unsold properties continues to trend higher and is currently seven days more than in December last year.

Meanwhile in the lettings sector, the annualised national growth in asking rents trends further into the negative (now -3.8%).

Scotland, Wales and all English regions (apart from the North West which shows no change) indicate year-on-year declines in the mix-adjusted average asking rent. The worst performer is the East Midlands with an annualised decline of 13.4%.

Twenty of the 33 London boroughs indicate positive asking rent growth (up from 17 last month). Kensington and Chelsea is the slowest market while Barking and Dagenham is the fastest lettings borough.

Details: Published: 10 December 2025; Hits: 290

There’s growing optimism that the Bank of England will cut base rate next week, from 4% to 3.75%.

Lenders have been cutting rates in anticipation and some analysts says there’s 90% chance of a Santa rate cut to 3.75%.

Average two- and five-year fixed mortgage rates are now at their lowest levels since the start of September 2022, before the Liz Truss ‘mini-Budget’.

Overall product choice grew to surpass 7,000 options and the average shelf-life of a deal fell to 18 days. There has been a notable drive by lenders to expand choice on low deposit deals during 2025.

These figures come from Moneyfacts which says product choice overall rose month-on-month, to 7,054 options, close to a record-high.

It adds that the drive to support borrowers seeking higher loan-to-value deals has been evident over the past 12 months. Year-on-year deals at 95% LTV rose by 111 and those at 90% LTV rose by 155, no other LTV tier has risen by more than 100 deals year-on-year.

Average mortgage rates on two- and five-year fixed deals fell by 0.08% and 0.10%, to 4.86% and 4.91% respectively, both now at their lowest points since September 2022.

It is the first time the average five-year fixed rate has dropped below 5% since May 2023.

The Moneyfacts Average Mortgage Rate fell to 4.91% month-on-month from 4.99%. Year-on-year the rate is down by 0.53%, from 5.44% in December 2024.

Mortgage activity led to a fall in the average shelf-life of a mortgage to 18 days.

The average two-year tracker variable mortgage rate remained unchanged at 4.66% month-on-month but has fallen by 0.80% year-on-year from 5.46%.

The average ‘revert to’ rate or Standard Variable Rate (SVR) remained at 7.27% month-on-month, but down by 0.58% year-on-year from 7.85%. In comparison, the highest recorded was 8.19% during November and December 2023.

Rachel Springall, Finance Expert at Moneyfacts, says: “Mortgage rates continue on the downward trend and November was particularly fruitful for fixed rate cuts.

“Year-on-year the mortgage market has seen an optimistic shift in the availability of products aimed at borrowers with a small deposit or equity, with almost 300 products added to the roster at 90% and 95% loan-to-value. The volume of deals at these tiers now rests at their highest counts since March 2008.

“The Government has been very vocal that it wants lenders to do more to support buyers to boost UK growth, so any improvement in high loan-to-value deals should be celebrated as it gives borrowers more choice as competition ramps up.

“The improvement in cost and product availability of mortgages paints a positive picture for borrowers as we edge towards the New Year. This year has not been without a few ups and downs for rate moves and product availability, but all signs are looking encouraging for the mortgage market to thrive moving into 2026.”

Details: Published: 17 November 2025; Hits: 638

The Government’s Renters’ Rights Bill has now become law, receiving final approval from the King on Monday 27 October 2025.

The Bill is set to transform the private rented sector bringing in new rights and responsibilities for landlords, letting agents and tenants.

As a landlord, you play an important role in delivering these reforms and will need to understand what these changes mean for you and your business. This will ensure you can be confident that you are complying with the law and providing your tenants with a safe, affordable and decent home.

The following changes will happen on 1st May 2026. If a letting agent acts on your behalf, then they will need to follow these rules too.

Section 21 abolished: ‘No-fault’ evictions are no longer permitted. Eviction is allowed only on valid legal possession grounds.
Wider possession grounds: Landlords can regain a property if they need to sell, move in themselves, or house close family members.
Most tenancies become rolling tenancies: New and existing tenancies will automatically convert to assured periodic ‘rolling’ tenancies.
Updated tenancy requirements: All tenancy agreements must comply with the new rules.
Renters’ notice: Tenants can end a tenancy at any time with two months’ notice.
Rent increases: Rent may only be increased once per year.
Rental bidding banned: Practices such as competitive bidding between tenants are prohibited.
Deposit limits: Only one month’s rent can be taken upfront between signing the tenancy and its start date.
Non-discrimination: Refusing tenants because they have children or receive benefits is illegal.
Pets: Landlords must consider tenant requests to keep pets and cannot refuse unreasonably.

Other elements of the Renters’ Rights Act will take effect in later phases.

New HMO licensing scheme

All landlords in Brent who rent out houses in multiple occupation (HMOs) will soon be required by law to hold a licence.

Following a public consultation and Cabinet approval of the scheme on 13 October 2025, landlords renting out smaller HMOs will be required to obtain a licence from 2 February 2026.

The new Additional HMO Licensing Scheme covers smaller HMOs with three or four tenants from different households.

A Mandatory Licence already applies to larger HMOs housing five or more people and a Selective Licence is required for any non-HMO rented property, such as a single-let or family home.

The new scheme is designed to help ensure properties are safe, well managed, and maintained to a high standard. It aims to raise standards for renters while supporting responsible landlords who manage their properties properly.

An Additional HMO Licence, valid for up to five years, will cost £1,040 from 2 February 2026. Landlords who apply early can secure the lower current rate of £840, with licences becoming active from February 2026.