S10 & S11 Property Market Update – January 2026

The start of 2026 has brought a noticeably slower opening to the year compared to January 2025, but much of that difference comes down to timing rather than any fundamental shift in demand. 

This time last year, activity levels were inflated by the impending end of the stamp duty holiday on 31st March, which encouraged many homeowners to bring properties to market earlier than planned in the hope of completing before the tax changes came into effect. While those timelines proved optimistic for many, they did result in higher listing and sales figures at the start of 2025.

Without a similar deadline influencing behaviour this year, the market has opened at a more measured pace, following what was overall a very positive 2025, characterised by strong levels of new listings and sales agreed. When viewed through that lens, January 2026 feels less like a slowdown and more like a return to normal seasonal conditions.

One of the clearest indicators of this is the number of properties available for sale. Stock levels currently sit at 395, down from 426 this time last year. On the surface, this could be interpreted as a tightening market, but context is key. The long-term January average stands at 336 properties, meaning overall choice remains comfortably above typical levels. Buyers still have plenty to choose from, even if headline supply is lower than the stamp-duty-influenced spike we saw twelve months ago.

New listings tell a similar story. January 2026 has seen 94 new properties come to market, compared with 102 in January 2025. However, this figure is almost identical to the long-term January average of 92. Rather than sellers retreating from the market, this suggests a more considered approach, with fewer rushed decisions and more deliberate timing.

Sales agreed reinforce the same theme. A total of 75 properties went under offer during the month, slightly below January 2025’s 93 but broadly in line with both January 2024 (77) and the long-term January average of 78. Buyer demand remains resilient. It is simply operating without the artificial urgency created by a tax deadline. The market is still functioning, just at a steadier and more sustainable pace.

Where the shift is more evident is in seller behaviour. There were 52 price reductions during January, above the long-term January average of 34 and marginally higher than January 2025’s 48. This suggests that expectations are adjusting to current conditions, with sellers responding to buyer feedback rather than holding firm at last year’s peak pricing.

At the same time, only 18 properties were withdrawn from the market, below the long-term January average of 22 and significantly fewer than the 26 withdrawn in January 2025. This indicates that while some sellers are choosing to pause, many are willing to adapt rather than chase the market down. It’s a measured response that reflects confidence rather than distress.

Fall-throughs have edged up to 20, broadly in line with the long-term January average of 19. While this is higher than December’s unusually low figure, it remains well within normal parameters and far below the disruption seen in earlier years when mortgage access and economic uncertainty were far more pronounced. Today’s fall-throughs are more commonly linked to survey findings or chain complications rather than affordability concerns.

For buyers, particularly first-time buyers and those looking to upsize, January 2026 represents one of the more balanced windows seen in recent years. Choice remains good, sellers are more open to negotiation, and activity levels are steady rather than frenetic. Well-presented homes are still selling, but buyers have the time and space to make informed decisions.

For sellers, the message is equally clear. The market now rewards realism. Properties that come to market competitively priced and well presented are still attracting interest, while those that start too optimistically risk becoming stale. The strongest results this January have come from sellers who have adapted quickly to buyer feedback and understood that today’s purchasers are comparing more carefully than they have in years.

Looking back to December 2025, the month closed with 398 properties for sale and 82 sales agreed. January has continued a gentle softening rather than delivering a sharp bounce, which is entirely consistent with typical seasonal behaviour. January is traditionally a planning and research month, with momentum often building as we move toward spring.

Overall, the current market feels measured, stable and far more sustainable than the urgency-driven conditions seen at the start of last year. When viewed against long-term averages, January 2026 is not underperforming; it is behaving much as a healthy market should. Quality properties will continue to attract strong interest, but every sale now needs to be earned through sensible pricing and good presentation.

For anyone considering a move in 2026, this is a market that rewards preparation, realism and timing. The frenzy has passed, but demand remains, just on more balanced terms. In the long run, that feels like a healthy place for the market to be.

Looking Ahead: Interest Rates and Buyer Sentiment

One of the key factors shaping buyer and seller behaviour right now is the direction of interest rates. The Bank of England’s recent decision to hold the base rate at 3.75% has been largely expected, but it does mark a subtle shift in market expectations. Toward the end of last year, there was a growing sense that at least two base rate cuts during 2026 were almost a certainty. That confidence has softened.

While inflation has eased from its peak, the Bank is clearly taking a cautious approach, wanting to see sustained progress before committing to a series of reductions. As a result, the outlook for multiple base rate cuts this year now feels less guaranteed and more dependent on incoming economic data.

That said, this isn’t necessarily negative for the property market. Mortgage rates have already adjusted significantly from their highs, and much of the expected easing was priced in some time ago. Buyers are becoming more comfortable with the idea that rates may stay broadly where they are for a little longer, rather than waiting indefinitely for the “perfect” moment. We’re increasingly seeing decisions driven by lifestyle needs and long-term plans, rather than short-term rate speculation.

For sellers, this reinforces the importance of pricing sensibly in the current climate. Buyers are active and motivated, but they remain cost-conscious and well informed. Properties that are positioned correctly continue to attract strong interest, while those that rely on optimism around future rate cuts risk missing today’s buyers.

Overall, the message from the rate decision is one of stability rather than setback. The market has largely adjusted to the new normal for borrowing costs. If rates do begin to ease later in the year, that could provide a further confidence boost, but activity is no longer reliant on it. In many ways, this underlines the broader theme of the current market: steady, considered and driven by realism rather than urgency.