The 2026 housing market is being influenced more by realistic pricing than perfect timing. Well-priced homes continue to attract buyers, while overpriced properties often remain available for longer.

Key takeaways

  • Homes reflecting local values and buyer expectations are continuing to sell steadily
  • Overpricing remains one of the biggest reasons homes are staying on the market
  • Mortgage rates rose in April and have since eased, but remain above earlier levels
  • Overall buyer interest has weakened, although committed buyers are still searching
  • Local market activity is more relevant than broad national housing trends

It’s the ambitiously priced ones that are attracting less interest and taking longer to find a buyer.

Average mortgage rates hit 5% in April, adding to average monthly repayments for home buyers, making them more cautious. While mortgage rates have since eased slightly, affordability remains a challenge for many households.

As a result:

  • Buyer demand is down compared with last year

  • Sales agreed are 7% lower year-on-year

  • Homes are taking longer to find buyers unless priced carefully

But here’s the key detail: demand hasn’t disappeared. It has just become more price-sensitive.

Homes that are realistically priced from day one are still attracting offers. Those that rely on ‘testing the market’ are often the ones sitting unsold, in fact, around 3 in 5 homes listed since January are yet to find a buyer.

This is similar to this time last year, but more price-sensitive buyers means accurate pricing remains key.

So whether you’re selling, buying, renting out, or just curious, here’s what it actually means for you.

Is now a good time to sell your house?

In short, it depends far more on pricing than timing.

Some sellers are taking a ‘let’s see what happens’ approach and pricing ambitiously, hoping a buyer will meet them there. In this market, that’s a bigger gamble than usual.

What’s working for sellers in 2026

  • Pricing in line with recent sold prices, not asking prices

  • Using up-to-date local comparables rather than historic peaks

  • Being realistic from day one rather than adjusting later

  • Getting advice from 2-3 local agents on market conditions and how to price and sell your home

What’s not working

  • Pricing based on 2022 or early 2023 values

  • Ignoring local market conditions in favour of national headlines

  • Listing at the highest suggested price without supporting evidence

If your home’s been on the market a while with no offers, it’s worth having a conversation with your agent. Find out the demand for your home in today’s market and whether to adjust the price before doing anything else.

Is 2026 a good time to buy a house?

This is one of the more buyer-friendly moments we’ve seen in a while, particularly in the South.

There’s more choice than a year ago, mortgage rates are actually easing (down to 4.8% in May, from that April high), and a fair number of sellers are genuinely motivated to do a deal rather than wait it out. If you’ve got a mortgage in principle and you’re ready to move, this is a good time to negotiate.

First-time buyers have felt the rate rises the hardest, especially in London, where the extra cost stacks on top of higher stamp duty too. If that’s you, it’s worth speaking to a mortgage adviser sooner rather than later.

Rates moving in the right direction now could make a real difference to what you can afford.

What does this mean for landlords?

The regional story matters more than the national one here.

While London and the South are seeing house prices dip slightly, the North East, North West, and Scotland are still seeing healthy growth, in the 3-3.5% range, thanks largely to tighter supply.

If your portfolio is weighted toward those areas, the fundamentals are holding up well.

UK house prices in 2026: the bigger picture

UK house price growth has slowed to 1.4% annually, and London is now in its ninth straight month of small annual price falls.

That’s not a crash, it’s a market adjusting to higher borrowing costs and a cautious mood among buyers.

The last time we saw a shock like this, after the 2022 mini budget, the market bounced back once mortgage rates settled down.

Rates are already easing again, so there’s reason to think the same pattern could play out here, just at a different pace depending on where you are.