The property market is incredibly resilient

By dhkk-admin

The property market is incredibly resilient, which is a blessed relief given the daily tumultuous international news. It can feel at times quieter than one would wish, an example of this being November of last year, but a lack of activity generally transfers itself to the market later. Children, death, work, affordability all drive the market forward. A busier/healthy market does however come from people feeling more economically secure, with taxes and interest rates playing a strong part in that. The SNP policies have a negative impact on the moving process, with the cost of moving being prohibitively expensive for many. The extent to which this has led to the dampening of the economy, I don’t think can be overstated. Not just because of people not being able to move to a home that is more suited to their needs, but also due to the impact on businesses that service this sector, from apprentices to solicitors, and all the jobs in between.

There is an expectation of two or possible three rate cuts bringing down the Bank of England’s Base Rate to 3% by the end of the year. Inflation will play a key part in any decision. The profound political need for lower oil prices in the US, and their president’s ability to move markets, will likely ensure our own inflation gets closer to the 2% target, with inflation not being quite as ‘sticky’ as it has been in the last couple of years. This will give the Bank of England greater ammunition to cut rates further.

So, what does this mean for the property market more generally? There’s not a huge amount of worth in giving national house price growth predictions, as the variation in different areas and property types can be somewhat marked. More broadly, I expect house price growth to keep up with inflation. It is also a market that has shown repeatedly that sensible pricing is key, and often results in the most successful outcome for the homeowner. There’s plenty of evidence of sale prices exceeding Home Report valuation, with some significant premiums being paid, particularly for dwellings in good condition. Part of my confidence in the market stems from the recent healthy activity we’ve seen in the selling of traditional ‘first time buyer’ homes, a vital foundation for the market.

I find it all too easy to be caught up by the daily news headlines, the reality is that life and the property market go on. Here’s to a happy and healthy 2026.