As we leave 2025 and step into 2026, the residential property market finds itself at a pivotal moment shaped by shifting economic conditions and one of the most significant waves of housing legislation in decades.
While the market has shown resilience through inflationary pressures, elevated borrowing costs, and constrained supply, the year ahead promises both structural reform and renewed complexity for homeowners, landlords, and renters.
Economically, the sector continues to navigate persistent inflation, high construction costs, and slower?than?expected reductions in interest rates (we saw a 0.25% reduction in the UK base rate in December 2025) - factors highlighted as major headwinds for the living sector going into 2026. These pressures have tempered transaction volumes and moderated price growth, particularly in regions where affordability was already stretched. Yet demand remains robust, driven by demographic pressures and chronic undersupply.
The most transformative force shaping 2026 will be the implementation of new legislation. Central among these reforms is the Renters’ Rights Act 2025, which begins a phased rollout in the year ahead with the major changes happening from May 1st.
The Act represents a major overhaul of the private rented sector, aiming to provide renters with greater security, improved rights, and stronger protections, while raising the quality standards of privately rented homes across England.
Its introduction follows years of debate over tenant stability and landlord obligations, and its impact on rental supply and landlord behaviour will be closely watched.
At Christopher Nevill we are running another Lettings event on January 15th at the Battle of Britain centre in Uxbridge to explain the changes and implications for landlords and tenants – contact us to reserve your place.
Alongside this, broader property law changes introduced in 2025 continue to reshape the landscape. These include reforms to leasehold structures, enhanced building safety requirements, and new transparency measures around land ownership and control - part of what has been described as the most significant transformation of property legislation in decades. For landlords, developers, and conveyancers, 2026 will be a year of adapting to these expanded compliance demands.
The planning system also remains under scrutiny, with government priorities centred on boosting housing delivery and advancing sustainability initiatives across the built environment. Combined with labour shortages and elevated material costs, these pressures will continue to influence the pace and cost of new housing supply.
As 2026 begins, the UK residential property market stands at the intersection of economic caution and legislative ambition. The year ahead will test the sector’s adaptability, but it also offers the potential for a more transparent, secure, and sustainable housing system—if reforms deliver as intended.
As always, the team her at Christopher Nevill are here to assist you with your plans and look forward to speaking with you.
Yours
Darren Murphy
