Welcome to This Week in Property, your essential update on the latest UK construction and property news. The UK property sector is entering 2026 in a state of recalibration rather than retreat. After a period defined by economic pressure, shifting buyer behaviour and tighter lending conditions, the market is beginning to show signs of renewed confidence. Activity is returning in pockets, competition among lenders is increasing, and technology is playing a growing role in how property is bought, sold and managed. This update brings together the key market trends, regional movements and industry developments shaping the months ahead, helping professionals understand where momentum is building and where caution is still required.

Property market trends and forecasts

The UK property market is sending mixed signals as we move into 2026. While uncertainty remains, several indicators suggest the market is proving more resilient than many expected. Halifax has reported that house prices have dipped to a six-month low, yet there are still clear reasons to be optimistic about buyer confidence and underlying demand.

Rightmove recorded its ‘busiest ever’ Boxing Day bounce, with a surge in interest that included the platform’s 10 most-viewed homes.

Looking ahead, industry leaders are forecasting a year defined less by rapid growth and more by stability. Paul Smith’s outlook points to 2026 being a year of resilience and renewal for the property sector, underpinned by realistic pricing and gradual confidence returning to the market. Lending conditions are also improving, with Barclays cutting mortgage rates as lender competition heats up, giving buyers more choice and flexibility.

Digital performance within the sector is strengthening too. Research shows that estate agency website conversion is on the rise since the Autumn Budget. This is reflected geographically, with data revealing the areas with the highest levels of buyer demand since the Autumn Budget with Bristol, Tyne & Wear, and South Yorkshire emerging as the UK’s most in-demand areas.

Housing market across the country

Regional performance continues to vary significantly. The north of Glasgow has seen the biggest house price growth in the past five years, reinforcing the long-term trend of strong regional markets outperforming expectations. At the top end, an American exodus is fueling prime London demand, even as research shows that London property sellers are most likely to sell at a loss. Elsewhere, sustained infrastructure and economic development mean dramatic growth is making the Oxford-Cambridge area ripe for investment.

Property industry innovations and partnerships

Alongside market shifts, the property industry continues to evolve through technology and strategic collaboration. New partnerships are reshaping how agents operate and scale, including Made Snappy 360 unveiling a strategic partnership with eXp UK and Yopa agreeing a partnership with iamproperty.

Artificial intelligence is becoming increasingly central to agency operations, highlighted by ValPalPro partnering with FIA as AI becomes a ‘must have’ for agents. At the same time, tenant expectations are shifting, with smart technology becoming ever more popular with renters. On the legal side, progress is also being made as the Law Society backs the government’s conveyancing technology push, while still calling for clearer and simpler regulation.

Investment and renovation insights

For investors and homeowners, value creation remains a key focus. Practical improvements continue to deliver strong returns, with five jobs identified that can add £30,000 to a home’s value. This aligns with broader trends showing that self-build and renovation are gaining momentum in 2026, as buyers look to tailor properties to their needs rather than compete in overheated segments.

However, rising standards and regulation are increasing costs in some areas. HMO landlords are being forced to spend big on maintaining properties, prompting many investors to reassess their strategies. As a result, alternative asset classes are gaining attention, with PBSA investment offering yields buy-to-let cannot guarantee anymore. Even at the very top end, performance is mixed, as the super prime London market reveals clear investment winners and losers.

Looking ahead

Despite ongoing challenges across construction and property, the direction of travel is becoming clearer. The construction sector is diversifying into more resilient areas such as healthcare, while the property market itself is showing early signs of recovery through increased activity, improving digital engagement, and heightened competition among lenders.

As 2026 unfolds, industry professionals who stay alert to regulatory change, embrace technology, and focus on emerging regional growth hotspots will be best positioned to navigate the shifting landscape and capitalise on new opportunities.

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.