The UK property market began 2026 with sustained buyer interest but continued affordability pressures, according to data released by Propertymark in January.
The trade body’s housing insight report recorded 74 new prospective buyers registering per member branch during the period, maintaining levels from previous months despite wider economic uncertainty.
Affordability concerns persist
Housing costs remained a significant issue for households, with 29% of adults reporting difficulty in covering rent or mortgage payments between 3 December 2025 and 4 January 2026, according to the data.
The figures come as the Bank of England base rate stands at 3.75%, with inflation remaining above the central bank’s target level.
Lettings market under pressure
The rental sector continued to experience supply constraints, with new fully managed property instructions averaging 3.87 per member branch in January 2026, a slight decrease from the previous period.
Competition for available properties remained intense, with an average of seven applicants per property recorded during the month.
Viewing activity increased to an average of 2.2 per property, whilst market appraisals rose to 21 per branch, suggesting sellers are preparing to list properties. The data also showed that buyers continued to negotiate below asking prices in many cases.
Nathan Emerson, CEO of Propertymark, said the figures indicated “a market that is stabilising rather than surging” following seasonal slowdowns. He noted that the pace of recovery would depend on inflation trends, interest rate decisions, and wider economic confidence throughout 2026.
Market outlook
The combination of steady buyer registration numbers, persistent affordability challenges, and limited rental stock characterised the opening month of 2026. The imbalance between supply and demand in the lettings sector is expected to continue affecting renters and agents during the year ahead.
Stock levels in the rental market showed a marginal increase, though supply remains constrained relative to demand levels.
