New Year, New Horizons: Navigating the 2026 Property Landscape
On behalf of the RPSA, we would like to wish all our members, colleagues, and industry partners a very Happy New Year. We hope you enjoyed a restful festive break filled with warmth and family. As January gets underway, the weather has delivered exactly what we expect from a British winter—it is cold, wet, and unapologetically grey. Please do wrap up well and stay in good health as we navigate these early weeks of the year.
As an Association, we are here to support you through the year ahead, providing clarity and professional guidance regardless of the climate.
A Subdued Close to 2025: Assessing the Data
The latest Halifax House Price Index shows a market that entered a period of recalibration as 2025 drew to a close. Average UK house prices dipped by 0.6% in December, following a 0.1% fall in November. This brought annual growth to a modest 0.3%, with the average property price standing at £297,755—the lowest level recorded since mid-2024.
While these figures might suggest a cooling market, the RPSA views this as a phase of stabilisation rather than a retreat. Industry data indicate that, despite a subdued year-end, overall activity levels remained resilient and broadly aligned with pre-pandemic averages. This suggests the market is approaching equilibrium after several years of significant volatility.
Regional Performance: A Varied Picture
For our members working across England, Wales, and Northern Ireland, the “boots on the ground” experience continues to vary significantly by location:
In the South East and East of England, activity remains steady, though buyers are increasingly price-sensitive and focused on the physical condition of properties.
2026 Outlook: Stability and Opportunity
The outlook for the coming year is one of stability rather than a dramatic surge. Several factors are expected to support the market as we move into the spring:
Lower Borrowing Costs: Recent reductions in the Bank Rate and easing mortgage rates are already improving affordability compared to this time last year.
Affordability Gains: The house price-to-income ratio was at its lowest in over a decade in December, a positive signal for those entering the market.
The “Boxing Day Bounce”: Rightmove reported its busiest-ever Boxing Day, with website visits up 93% compared to Christmas Day. Enquiries to agents increased by 67% in the five days following Christmas, indicating significant latent demand.
While some analysts suggest that if wage inflation slows, the affordability boost may be tempered, most commentators currently expect a modest 1%- 3% rise in house prices in 2026.
The Professional’s Focus: Condition and Quality
In a stable market with modest price growth, the role of the independent surveyor becomes even more critical. With a significant number of new listings hitting the portals—up 143% in the days following Christmas—buyers have more choice than they have had for a considerable time.
When supply is plentiful, buyers are less likely to overlook defects. We anticipate that 2026 will be a year when pricing realism dominates. For our members, this means providing reports that offer absolute clarity on maintenance and structural integrity, as these factors will increasingly drive pre-purchase negotiations.
Action for Level 3 Surveys
In this period of market recalibration, surveyors should take extra care to highlight “hidden” issues that could lead to significant future expenditure. With the current wet weather providing a stern test for the UK’s housing stock, identifying issues with rainwater goods, sub-floor ventilation, and rising damp is essential. In the Action section of a Level 3 report, the focus should remain on the remedial steps required and the urgency of the work, ensuring the client is fully aware of the scale of the commitment before they exchange.
Additional Information for Level 2 Surveys
The sharp rise in new listings—particularly smaller zero-to-two-bedroom properties—suggests a high volume of first-time buyer activity. For these clients, the “Additional Information” box is an invaluable tool for providing context. While we avoid providing specific repair costs, we deliver significant value by identifying areas where modern standards are not met or components are nearing the end of their useful life. This allows the purchaser to seek their own quotes and enter the transaction with their eyes wide open.
Looking Forward
As the Association for Independent Surveyors, the RPSA takes a forward-thinking view of these trends. Stability allows our members to provide the best possible service without the pressure of an overheated market. Whether you are conducting a Level 2 or Level 3 survey or focusing on new build snagging, we remain dedicated to supporting your professional journey throughout 2026.
Finally, please keep your diaries clear for 14th May. We have an incredibly exciting event in the works—details are currently under wraps, but all will be revealed very soon. It promises to be a highlight of the year for the Association, and we can’t wait to share more with you.
We’d love to hear your on-the-ground insights from across the country. Share your local market observations with us at info@rpsa.or.uk
Ref Click Here for Halifax house price index.
