With more than 20 years of experience in the residential property sector, Sarah Barnes, head of residential conveyancing at law firm Napthens, looks at the housing market in 2026, where chains are more fragile, expectations are higher and buyers are increasing scrutiny on purchases.
The theme of cautious confidence appears to be taking over. However, it’s still early days and we can’t define a year by what happens in the first few weeks, but we’ll definitely see changes to how both buyers and sellers approach transactions, with upcoming government changes coming into place.
The market is more measured than in recent years, but it’s also more informed. Buyers and sellers are taking advice earlier, asking better questions, and thinking more carefully about risk, timing and affordability.
Sellers will have more onus on them at the start of the process, as the government has introduced changes aimed at reducing the number of failed transactions.
Buyers
Preparation will be key in 2026. Buyers will need to have clarity on funding to ensure the transaction isn’t delayed by money or loans not being available.
There is also the setting of realistic timescales as this can often lead to people pulling out of a purchase if they think something is taking too long.
It will inevitably mean that the strongest buyers will be those who understand the process and anticipate issues before they arise, and taking early legal advice will matter far more than trying to move quickly.
Sellers
Pricing, presentation and pragmatism will be crucial. Buyers are more discerning and less willing to overlook issues.
To overcome these issues occurring during the sales process, leading to a failed transaction, the government wants sellers to provide some key information up front – including information about the condition of the home, leasehold costs and details of those involved in chains.
There is also the use of digital tools (e.g. property logbooks and digital ID verification) to help share information up front and easily to potential buyers.
Transparency and collaboration across the transaction will be essential to maintaining momentum and reduce the risks associated with a transaction failing.
Mansion tax
The tax may act as an incentive for homeowners to downsize and potentially free up the market, but it’s likely to be limited as we’re talking about the top end of the market where the fewest properties are sold. It would have been more beneficial for the threshold at which stamp duty is charged, to be increased to £250,000 to provide further incentives to those on the first rung of the housing ladder.
Property professionals
This will be a year where quality, communication and judgment really count. Chains are more fragile, expectations are higher, and calm, clear advice has never been more valuable. It means collaboration between professionals isn’t optional — it’s fundamental to every single transaction.
Overall
After many years in residential property, I’m reminded that while the market changes, the fundamentals do not.
Clear advice, professional collaboration and understanding client goals remain what truly make the difference.
The housing market will inevitably shift as we move through 2026, but it’s up to everyone involved to play a positive role in every sale or purchase, as every failed transaction is something all those involved will want to avoid.
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