A Housing Market in Transition

The UK housing market in 2025 has defied simple classification. While some have characterised it as resilient and others as subdued, the reality has been more nuanced, with performance varying notably by location and price point.

Regional divergence has been a defining feature of the past year. Northern Ireland recorded solid price growth, while certain areas of London experienced modest price adjustments. Nonetheless, there is broad agreement that the market performed more robustly than many had expected, particularly given the wider economic backdrop.

A housing market in transition

This resilience is striking when viewed against the challenges facing both buyers and sellers. Higher stamp duty, pre-Budget uncertainty and sustained cost-of-living pressures all had the potential to suppress activity. Instead, transaction levels and pricing have remained broadly stable, pointing to a market that has recalibrated rather than corrected.

Looking ahead to 2026, the focus turns to whether this period of restrained growth will persist, or whether changing economic conditions will prompt a shift in momentum.

Within this context, renting continues to play an important role, particularly in London’s higher-value markets. Affordability considerations and lifestyle flexibility remain key drivers, while recent regulatory reforms have introduced greater clarity and security for tenants. As a result, renting in 2026 offers a more stable and transparent proposition than in recent years, both for occupiers and for those investing in well-located residential property.