Josh Butcher, Trainee Solicitor in the Residential Property team at Holmes & Hills, discusses the key trends shaping the residential property market in the first half of 2026 and the challenges facing home-movers.
The first half of 2026 has shown a shift in the property market, particularly with average asking prices for residential houses falling by 1.0% in July (compared with a 0.2% average over the past 10 years). Below we outline the key trends influencing the market and how home-movers can prepare.
Affordability is likely to remain a challenge for many home-movers. The average two-year fixed mortgage rate is currently 4.92% (which is slightly down from 5.08% last month, but up from 4.25% in February before the war in Iran). Higher mortgage rates mean stricter affordability checks from lenders, impacting how much buyers can borrow. Buyers will need to consider factors such as potential increased monthly payments, extending their mortgage term, or consider alternative properties.
Despite affordability pressures, housing supply is at a 12‑year high for this time of year. Rightmove data shows agreed sales for the first half of 2026 were down 6% compared with the same period in 2025 (however agreed sales are equal to the same period in 2024). With more choice, buyers have an opportunity to negotiate more confidently. Lenders also remain keen to lend and compete on rates to attract buyers, supporting a cautiously positive outlook.
Sellers are likely facing greater competition to attract committed buyers. Three-quarters (74%) of properties sold this year did so without a price reduction, indicating 26% of sellers renegotiated the price. Stricter lending conditions, buyers raising further enquiries, surveys, and more in-depth inspections of the property are all having an impact on property prices.
The government has proposed reforms to the conveyancing process aimed at easing the house-buying system. These include, requiring further upfront property information, introducing new standards for property agents and new mechanisms to make property contracts binding at an earlier stage. These aim to cut costs, reduce delays, and prevent transactions collapsing. Although guidance is awaited, these changes may influence market conditions going forward, and are likely to have a significant impact on the conveyancing process.
Instruct a solicitor early so that the legal paperwork, protocol forms and key property documents (certificates, guarantees, installation records, and any leasehold or management information) are ready. Holmes & Hills offers a pre-market review of your property title and supporting legal documents to identify any issues or concerns which may delay your home-move.
Secure a mortgage in principle early to ensure affordability and avoid delays once you find a property. Carry out thorough due diligence including arranging a suitable survey, obtaining searches, and raising any necessary enquiries so you are confident in the property before committing.
Whether you are buying or selling, Holmes & Hills is here to help. Our specialist property solicitors support clients across all stages of their move and provide clear and practical advice. If you would like guidance with your next home-move, please do not hesitate to get in touch with our team.
*Data utilised in this article is from the Rightmove House Price Index report published 20 July 2026.
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Disclaimer
The content of this article is provided for general information only. It does not constitute legal or other professional advice. The information given in this article is correct at the date of publication.
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