Market set to steady after dismal 2025

Buyers and sellers have been put off by a flatlining housing market this year – but hopes are rising among industry experts that things can only get better, with falling interest rates and a reality check

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This year was another difficult one for the property market as house prices continued to stagnate, and experts are only slightly more optimistic about the year ahead.

Although 1.2 million homes were sold last year, the highest figure recorded since 2022, prices only rose a modest 1.1% to £270,300, an increase of just £3,050, according to Zoopla.

Prices have largely flattened since Liz Truss unleashed her ill-fated mini Budget in September 2022, which sent mortgage rates soaring and froze activity almost overnight.

Two tax-hiking Labour Budgets have further dampened demand, worsened by selloffs as buy-to-let landlords and second homeowners sold up to escape the squeeze.