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January 2026 started the year with renewed momentum in the UK property market, as asking prices rebounded and early-year activity suggested buyer confidence returning after December’s lull.
Market Snapshot & Key Figures
- House prices: Rightmove reported a sharp increase in asking prices in early January — the largest January rise in decades. Nationwide data showed average UK prices up ~2.5% y/y by November 2025.
- Rental inflation: Rents remain positive, supporting yields for investors, with private rental growth continuing to outpace broader inflation.
- Policy updates: Proposed leasehold reforms, including ground rent caps, signal structural changes affecting freehold income streams and property valuations.
- Market sentiment: Buyer instructions and activity are picking up as the New Year begins, particularly in regions with strong rental demand.
What This Means for Investors
The start of 2026 brings a mix of opportunity and caution. While price growth is returning, policy changes and market shifts mean investors should act strategically rather than speculatively.
- Prioritise cash flow: With modest capital gains expected, focus on assets that deliver strong rental income.
- Strategic locations: High-demand regions, commuter towns, and constrained markets remain attractive.
- Prepare for policy changes: Leasehold reform may affect future income streams — review portfolios to mitigate risk.
- Move when ready: Increased activity and renewed buyer confidence offer the chance to acquire quality assets before broader competition increases.
January reinforces the need for strategic calm: income-focused investments, selective location choices, and proactive policy awareness.
Contact Elborn Property Group to review your property strategy and take advantage of early 2026 market momentum.
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