A Delicate Balancing Act in The Housing Market
You don’t need me to tell you that the housing sector has been in a state of flux, for reasons outside of its control. Tensions around the world have upturned expectations about interest rates and inflation, and have consequently unsettled some buyers and sellers.
This latest housing market update draws on data from Propertymark for February, before the Middle East conflict began, and so does not reflect that volatility.
However, there are selected figures within it which help us stay upright on this year’s fast-changing housing market high wire.
So, let’s get on with it.
Key takeaways
- The UK housing market remains finely balanced, with global events continuing to influence interest rates, inflation, and buyer confidence.
- Property sales are taking longer, with 43% of transactions exceeding 17 weeks, highlighting delays across the process.
- Sellers can help speed things up by preparing upfront property information early, reducing the risk of surprises later.
- Affordability is tightening, with 29% of people struggling with housing costs, making realistic pricing more important than ever.
- House prices have seen a modest dip, and cautious buyers are unlikely to stretch beyond fair value.
- The rental market continues to face strong demand, with far more tenants than available properties.
- Upcoming changes like the Renters’ Rights Act are prompting more landlords to seek professional management support.
- There is a potential long-term risk of landlords exiting the market, which could further impact rental supply.
If you’re selling a property
One key stat I want to talk about is the time it takes to reach exchange of contracts.
This latest data suggests that in February, no fewer than 43% of housing transactions took longer than 17 weeks to complete.
This is, frankly, shocking. It’s easy to blame slow action by different professionals, from surveyors to estate agents, and mortgage brokers to solicitors. Undoubtedly, the system would benefit from more collegiate working and faster turnarounds.
But sellers, too, have a part to play.
The maximum up-front information that can be provided by a seller, the better. In turn, this reduces the chance of a nasty surprise further along the purchasing process. For example, a problem with the condition of the house, which could have been flagged at the start.
At Move iQ we always encourage the preparation of upfront information as far in advance as possible, and this represents a good starting point for any transaction.
Another key figure from the latest data concerns affordability.
Right now, 29% of people say they find it ‘very or somewhat difficult’ to afford their mortgage or rent. That figure could get worse as the repercussions of the Middle East conflict spill over into our UK economy.
So, this makes sensible asking prices absolutely vital in the market right now.
The Halifax index, one of the most authoritative of the many housing market indices produced each month, shows a 0.5% drop in recent weeks. And it’s anticipated that others will follow suit.
This is not a big drop, and it shouldn’t deter sellers from coming to the market.
But it’s clear that buyers are very cautious: they will be faced with dearer-than-expected mortgages. So, they will not pay over-ambitious prices for homes. Sellers, please take note!
The rental market
The rental market is less time sensitive than the sales side, so February’s figures make for useful reading.
The average number of new prospective tenants registered with each Propertymark branch jumped up to an average of 80.
Regular readers will know what comes next because, with each branch having only around 11 homes available to rent, the typical number of applicants per property is just over seven.
It’s been a long-term trend – for some years now – that rental demand outstrips supply, and this is why rents have risen so much since around the start of the pandemic.
A more under-the-radar stat is that during February, there was a rise in the number of landlords wanting letting agents to take on full management of properties. On average, each branch saw 4.5 new instructions of this type from landlords.
Why is this interesting? Well, the upcoming Renters Rights Act, which comes into force in the immediate future on May 1, makes being a landlord far more demanding than before.
With literally hundreds of existing laws relating to property condition and management, plus new rules in the Act, many landlords who previously managed their tenants and rental properties themselves, are now looking for professional agents to do some or all of the heavy lifting.
This is a good thing, for two reasons. It means many tenant relations and property conditions will be better when handled by an expert who is up to date with new regulations, and it means that landlords themselves do not expose themselves to the increased penalties for failing to abide by the latest rules.
What’s next for the housing market?
For all of us, the coming weeks will see how the Middle East conflict continues to impact us – watch out for inflation figures each month. Furthermore, keep an eye out on the Bank of England’s interest rate announcement on April 30 and June 18.
For renters and landlords, the Renters’ Rights Act becomes law on May 1.
There will be no immediate change for most renters, perhaps, but over time, we should see a better-managed private rental sector on the one hand. On the other hand, there’s the risk of more landlords feeling it’s too complex and selling up instead.
As ever, there’s a lot going on! We’ll have the next instalment of the 2026 housing market in a few weeks time.
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Last Updated: April 17th, 2026
