Fine and Country National Housing Market Update May 2026

£795,000 £1,146,318 -5.6% £631 £41bn 16,087

Source: Dataloft by PriceHubble, Bank of England, HMRC, ONS

WEATHERING THE HEADWINDS

The housing market has remained broadly steady into May, with transaction figures holding firm and modest price growth continuing, an encouraging sign that the market is weathering the headwinds of higher mortgage rates and global uncertainty.

HOLDING PATTERN

Broader economic indicators remain mixed. Inflation rose to 3.3% in March, driven largely by higher energy costs stemming from the conflict¹, prompting the Bank of England to hold interest rates steady at 3.75% at its April meeting as it adopts a wait-and-see approach. The longer-term picture remains uncertain, with future markets currently pricing in just a single rate hike across 2026. Mortgage rates have edged higher since the initial shock, though mortgage pricing has got more competitive in recent weeks as lenders look to stimulate activity. On a more positive note, GDP grew by 0.5% in February, following modest growth of 0.1% in January¹, though the broader outlook remains clouded.

BUYER DEMAND

Despite higher mortgage rates driven by global uncertainty, the housing market has remained broadly steady. While new buyer demand for April is running 7% below the same period last year², this is consistent with the broader trend seen throughout 2025, suggesting the market is holding steady rather than deteriorating further. Property professionals reflect this view, with 42% reporting that buyer confidence is broadly in line with three months ago³. Mortgage approvals, an indicator of future demand, reached 63,531 in March, up 1.3% from February and the highest total since November 2025 4 . On an annual basis, approvals are just 0.8% below last year, pointing to underlying market resilience.

STEADY MOMENTUM

Transactions rose 1% in March to 104,070, the highest monthly seasonally adjusted residential figure since March 20255 . While figures were 41% lower year-on-year, this largely reflects the exceptionally high levels seen in March 2025 as buyers rushed to complete ahead of stamp duty

threshold changes in April. Committed buyers and sellers are keeping momentum going, with sales agreed running just 3% below last year6

MODEST GROWTH

UK annual house price growth picked up to 3.0% in April, up from 2.2% in March, suggesting the market regained some momentum after a slower start to the year7. Looking ahead, geopolitical uncertainty and supply at an eleven-year high for this time of year² are expected to weigh on values, with price growth forecast to remain modest over the next twelve months.

In England and Wales, the average price of a prime market property is £1,146,318, softened by 5.6% year-on-year.

NEW TOWNS

Over 212,000 new homes were built in the year to Q1 2026, up 2% on the previous 12 months and 7% on the same quarter last year8 . While momentum is building, the Government still needs to significantly ramp up delivery to meet its target of 1.5 million homes this Parliament. The government has confirmed seven proposed new town locations across the UK, each expected to deliver at least 10,000 homes, with some developments exceeding 40,000. The locations include Tempsford, Leeds South Bank, Crews Hill and Chase Park, Manchester Victoria North, Thamesmead, Brabazon and West Innovation Arc, and Milton Keynes. These new towns are planned as self-contained communities, combining housing with transport links, green space, local high streets and employment opportunities.

¹ONS, ²Rightmove, 3 PriceHubble poll of subscribers (April 2026), 4Bank of England, 5HMRC, 6Zoopla, 7Nationwide, 8DLUHC

£550,000

£758,213 -3%

£355

£539,000

£730,130 -1%

£383

£581,000

£772,405 -0.3%

£384

£489,000

£635,071 -0.1%

£335

£725,000

£959,533 -4.6%

£469

£931,000

£1,313,493 -3.5%

£569

£419,000

£560,695 -1.5%

£304

£512,000

£687,563 -0.1%

£356

£528,000

£695,139 -1.5%

£338

£802,000

£1,094,530 -2.2%

£533

£1,530,000

£2,417,614 -5.2%

£1,185

£275,946

£795,000

£1,146,318

£221,613

£704,000

£1,053,008

Source: Dataloft by PriceHubble, Land Registry.

£273,548

£658,000

£905,011

£434,303

£1,040,000

£1,498,947

£222,299

£658,000

£1,013,547

£288,280 £807,000 £1,162,576