# Housing market may be turning a corner as confidence grows – surveyors

By David Fell — 2026-01-15

David Fell, lead analyst at Hamptons, said: “The North-South divide looks likely to persist into 2026.

“Housing markets across the Midlands and North seem set to keep the lion’s share of house price growth this year.

“Meanwhile, early signs suggest that sellers in southern markets are still having a tougher time. Many have seen price growth grind to a halt, or even in some cases, slip backwards.

“Southern markets will bear the brunt of the impending mansion tax, and 2026 will see prices here adjust to reflect this new reality.

“Current owners will absorb the extra cost, and we expect values of £2m-plus properties in these areas to fall by about five per cent this year.

“Meanwhile, the number of homes for sale remains around 45 per cent above pre-pandemic levels, meaning buyers don’t have to rush into making decisions and keeping a tight cap on price growth.

“While 2026 will see some borrowers coming to the end of shorter, more expensive fixed-rate deals and securing cheaper offers, some are still adjusting to more expensive repayments.

“During 2026 and 2027, some 600,000 borrowers will roll off sub-three per cent deals and onto the reality of higher rates.

“Investors are likely to remain thin on the ground this year, with fewer landlords purchasing in 2025 than at any time in the last decade.

“The impact of the increased five per cent stamp duty surcharge is likely to continue biting hard in 2026.”

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