Easter 2026 and England’s residential property market is characterised by rising spring activity, improved supply, and a more measured pace across both sales and lettings.
While the seasonal uplift is familiar, the backdrop is anything but: upcoming housing legislation and the economic shockwaves from the Iran war are shaping sentiment, pricing, and investor behaviour in ways that are increasingly visible.
Spring has brought its usual increase in listings, viewings, and buyer enquiries, with the number of homes for sale sitting at an eleven?year high. Average new?seller asking prices rose across England by 0.8% in March, a typical seasonal lift, though annual asking?price growth remains marginally negative at –0.2%.
Buyers are active but price?sensitive, with affordability still a defining constraint. Mortgage approvals remain below the six?month average, reflecting a market that is moving—but not overheating.
The Iran war has added a significant layer of economic uncertainty, particularly through energy?price volatility and global supply?chain disruption.
While the UK has not yet seen the extreme inflationary spikes of earlier geopolitical crises, the conflict has contributed to a slower?than?expected fall in living costs. This, in turn, has tempered buyer confidence and kept some would?be movers on the sidelines.
Investors, especially those exposed to international markets, are adopting a more defensive posture, favouring stable, lower?risk assets and delaying discretionary
The rental market is gradually rebalancing. Demand for rented homes is 14% lower than a year ago, and enquiries per property have fallen to a six?year low.
Rental growth has slowed to 1.9%, down from 2.8% last year, as affordability ceilings bite. More homes are returning to the rental pool—partly because improved mortgage conditions have enabled more renters to buy, freeing up stock.
Yet supply remains 23% below pre?pandemic levels, meaning scarcity continues to underpin rents.
The Iran war’s impact on energy costs has also fed into landlord overheads, limiting the scope for rent reductions even as demand softens.
The government’s long?trailed reforms to the private rented sector—most notably the introduction of the Renters Rights Act that includes the abolition of Section 21 “no?fault” evictions and the introduction of a new Decent Homes Standard will be implemented in May 2026. Landlords are already adjusting strategies, with some exiting the sector ahead of increased compliance costs, while others are consolidating portfolios to focus on higher?yield, lower?maintenance stock.
Anticipated updates to planning policy and energy?efficiency requirements continue to influence developer behaviour and buyer priorities, particularly as EPC standards tighten, although major changes have now been pushed back until 2027.
Finally, England’s housing market ends March 2026 in a state of cautious momentum.
Seasonal activity is rising, but geopolitical uncertainty and regulatory change are keeping both buyers and landlords measured. Stability, rather than acceleration, looks set to define the months ahead.
As always, the experienced team at Christopher Nevill and myself are here to help you with your plans and welcome the opportunity to do so.
Yours
Darren Murphy
