December’s property market is showing a profound sense of relief after the Budget turned out less harsh than many feared.
Instead of major shocks and pressure on interest rates, most would-be buyers and sellers have found some stability, meaning we should see sales volumes hold steady, with some seasonal dip towards the end of the month, but nothing dramatic.
House prices will tread water, avoiding the steep falls some had predicted, as the memory of the chaos pre-Budget fades.
With buyers feeling a little more optimistic and sellers less pressured to slash prices, December looks set to lead to a more positive January. Just don’t bet the house on them rising by much anytime soon!
But there is some good news out there.
We are seeing slightly easier mortgage conditions leading to improved affordability for some buyers. This could make mortgages more affordable moving into 2026 than in the high-rate period, potentially enabling more first-time buyers or movers to enter the market.
As a result, mortgage-driven demand may firm up, supporting continued property sales.
We can expect a fair amount of regional variation, and growth is likely to vary a lot. For example, analysts see stronger upside in many regional and suburban markets, especially where affordability is still reasonable, and demand remains steady.
December property prices won’t slide as many predict – but don’t bet your house on them rising either
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GETTY
On the other hand, high-cost areas (especially central parts of cities) could remain subdued due to affordability pressures.
So, the winners of 2026 may well be outside major urban centres — or in commuter belts and smaller cities/towns.
We can also expect to see continued stress and change in the rental market over the coming weeks.
Laws and policy changes (tenant-rights, efficiency standards, etc.) are prompting some landlords to exit the market, reducing supply, which could, in turn, put upward pressure on rents or keep rents stable despite weaker demand.
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Jonathan Rolande shares his predictions
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JONATHAN ROLANDE
Looking more broadly, confidence in the market is also being shaped by wider economic sentiment.
While inflation has eased compared with previous peaks, households are still navigating higher living costs, meaning affordability remains front and centre for most buyers.
This is encouraging more pragmatic decision-making, with many people prioritising value, energy efficiency, and long-term stability over aspirational moves.
As we approach 2026, agents report that viewing levels are steady, and although buyers are taking longer to commit, they are more purposeful when they do make offers.
Additionally, developers are beginning to re-enter the market, albeit cautiously. Some are reviving previously paused projects, contributing to a slow but important rebuild of housing supply.
However, construction costs remain elevated, which may prevent any rapid increase in new-build availability.
For existing homeowners, this environment could mean greater attention on property condition, sustainability features, and realistic pricing strategies.
Overall, while December is unlikely to deliver major surprises, it is creating a foundation for a more orderly and predictable market in early 2026. I hope!
Jonathan Rolande is a property expert and the founder of House Buy Fast. For more information, visit www.jonathanrolande.co.uk.