Welcome to This Week in Property, your essential update on the latest UK construction and property news.  As 2026 begins, the UK property market is entering a period of adjustment rather than slowdown. Price movements are becoming more nuanced, investment activity remains selective but active, and technology and regulation are reshaping how the industry operates. This roundup captures the key stories, data points, and trends setting the tone for the year ahead.

Market overview: a year of transition and new beginnings

As we start 2026, the UK property market is showing signs of resilience despite facing some challenges. Recent data from Nationwide revealed a December dip in house price growth, though the overall trajectory for 2025 remained positive. Industry experts are now analyzing these trends while predicting what lies ahead in the new year.

House price trends and market data

The property industry has been carefully reviewing the latest house price data, which shows a mixed picture across different regions and property types. Nationwide’s research highlighted which property types experienced the highest growth in 2025, providing valuable insights for investors and homebuyers alike.

Propertymark’s comprehensive 2025 review has revealed key data about the UK property market, including how many homes estate agents listed throughout the year. This data provides a crucial benchmark for understanding market activity.

In the prime property sector, Savills reports that price drops are beginning to slow, suggesting a potential stabilization in this segment. Meanwhile, Lloyds has identified the biggest price gains and falls across the UK, highlighting regional disparities in market performance.

Investment and development news

The hotel sector had a strong 2025, with UK hotel investment volumes reaching £5 billion according to Savills. This significant figure demonstrates continued confidence in the UK hospitality sector.

In notable property listings, Brighton’s iconic Palace Pier has been put up for sale, presenting a unique investment opportunity. Meanwhile, residential development continues with a new Buckinghamshire development planned, adding to the UK’s housing stock.

The auction market ended 2025 on a high note, with Allsop raising over £70 million in its largest ever December residential auction. This success indicates strong investor appetite despite seasonal trends.

Agency news and industry developments

There’s significant buzz around estate agency Dexters, with reports that private equity backers are lining up for a possible sale that could value the company at around £500 million.

Expansion continues in the sector with one fast-growing agency acquiring a rival’s lettings portfolio, demonstrating ongoing consolidation in the industry. Unfortunately, security concerns have been highlighted after an estate agency was targeted by thieves in an overnight break-in.

On a positive note, the property industry continues its charitable efforts, with Hamptons, Nicol & Co, iamproperty, Yopa, and Propertymark Trust all contributing to worthy causes.

Mortgage market and financing

The new year has started with promising news as lenders announce new mortgage rate cuts. Looking ahead, forecasts suggest mortgage rates could drop below 3% in 2026, potentially boosting market activity. Banks have also revealed how much they expect to lend in 2026, providing insight into anticipated market volumes.

Regulatory updates and policy changes

Local authorities are set to play a larger role in housing regulation as councils are granted stronger Renters’ Rights Act powers. This development will shape the rental sector in 2026 and beyond.

Industry analysts are also speculating about whether there will be a ‘Reeves rebound’ for the housing market in 2026, considering the potential impact of government policies on market dynamics.

Technology and innovation in property

Artificial intelligence continues to transform the property sector, with experts foreseeing more AI growth in 2026. A proptech leader suggests that AI will move from experimentation to delivery this year, indicating a maturing technology landscape.

To help navigate this changing environment, a new quiz helps agents assess their AI readiness, providing a practical tool for adoption.

Industry predictions for 2026

Looking ahead, experts have shared various forecasts for the coming year. Property professionals predict a busy market, more evictions, and increased corporatisation in 2026. Jonathan Rolande has outlined 7 predictions estate agents need to prepare for, offering strategic guidance for industry professionals.

For the Scottish market specifically, analysts have identified six themes that will define Scotland’s property market in the coming year.

Recognition and industry participation

In recognition of his contributions to the property industry, TV property expert Phil Spencer has been named in the New Year’s Honours, a well-deserved acknowledgment of his impact.

For those working in the sector, the Voice of the Agent survey returns for 2026 with monthly reporting, and agents are encouraged to submit their responses to January’s survey to help shape industry understanding.

A market in transformation

As we enter 2026, the UK property market continues to evolve in response to economic conditions, technological advances, and regulatory changes. With mortgage rates predicted to fall, AI adoption accelerating, and new developments underway, the sector faces both challenges and opportunities. Industry professionals who stay informed and adaptable will be well-positioned to navigate the changing landscape in the months ahead.

Stay ahead of the curve by joining us at our 2026 property events. Connect with industry leaders, gain insights from expert speakers, and network with developers, investors, and professionals across the sector. Whether you’re new to property or growing your portfolio, our events are designed to keep you informed, inspired, and connected.