Welcome to This Week in Property, your essential update on the latest UK construction and property news. The UK property market continues to show resilience and growth across multiple sectors, with student accommodation leading the charge, mortgage costs falling, and significant investment activity driving the industry forward. Here’s your comprehensive weekly roundup of the key property developments.

Student accommodation market surges with major investments

The Purpose-Built Student Accommodation (PBSA) sector is experiencing unprecedented growth. Telford Living has lodged plans for a substantial 520-bed east London PBSA scheme, signaling strong confidence in the student housing market.

Meanwhile, MCR Property Group has launched its impressive £360m Flow Student platform, demonstrating the scale of investment flowing into this sector. In Scotland, Kelvin Properties secured an £18.8m loan for a Glasgow student scheme, while McLaren Property won a £20m loan for an Exeter co-living scheme.

Positive news for homebuyers: mortgage costs drop

In welcome news for prospective homebuyers, average monthly mortgage payments have fallen by £119 year-on-year in January. This significant reduction is providing much-needed relief for those looking to enter the property market, with Estate Agent Today reporting buyer delight at the falling costs.

The positive momentum is further supported by expectations of interest rate cuts following inflation falls, bringing joy to estate agents across the country.

Commercial and residential development activity accelerates

Large-scale residential developments are gaining momentum. Bradford Council and ECF received approval for a 1,000-home ‘city village’, while Avant Homes secured planning permission for a £31.7m Telford residential scheme.

In a significant legal victory, Weis Group won their Manchester legal battle to develop £350m residential towers, clearing the way for major urban development.

Estate agent market shows strong performance

The estate agency sector is experiencing a surge in activity. Rightmove reports a 50% increase in agent valuation leads, indicating growing consumer confidence in the market. Additionally, residential auction sales rose 53% in January 2026, demonstrating robust market activity.

However, challenges remain with property transactions taking longer, as a third of sales now take 17 weeks or more to reach exchange.

Investment and finance developments

The investment landscape shows mixed signals. While Regional REIT portfolio valuations have dropped as market conditions delay recovery, there are positive signs elsewhere. IRES REIT saw profits jump to almost €50m from 2024’s losses.

Major financing deals continue to support development, with Avanton winning a £92.25m Cheyne loan for a south London residential scheme.

Tax and regulatory concerns mount

Property taxation remains a significant concern for investors and buyers. Reports indicate eye-popping increases in the government’s property tax grab, with £2m a day being taken in tax from buyers, landlords, and investors.

Rising home values are pushing more families into inheritance tax without them realising it, creating additional financial burdens for property owners.

Technology and innovation drive industry forward

The property sector is embracing digital transformation. The industry anticipates a significant digital shift in conveyancing this year, while estate agents are preparing for AI-driven selection processes by 2026.

Looking ahead

Despite some challenges with property transaction delays and tax pressures, the UK property market is showing resilience across multiple sectors. The student accommodation boom, falling mortgage costs, and strong development pipeline suggest continued growth momentum heading into 2026.

For property professionals, investors, and buyers, staying informed about these market developments will be crucial for making strategic decisions in this evolving landscape.

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