Looking back on 2025

It’s hard to believe that Christmas is almost here and that we’re wrapping up (no pun intended) yet another year. But what exactly did happen from a property perspective in 2025 – and what can we expect to see in 2026? Read on to find out.

1. The property market breathed a sigh of relief 

Well, almost. Whilst property prices didn’t grow at a pace that the UK population has grown accustomed to, they did become steady. After a prolonged period of relative unsteadiness, this was hugely welcomed by our clients (and our team of Surrey and Hampshire estate agents). Steadiness provides confidence for both buyers and sellers, and we expect this to continue in 2026.

2. Fertile ground for first-time buyers

Aside from Stamp Duty Land Tax (SDLT) thresholds changing from £250,000 to £125,000 in April, which saw first-time buyers having to pay 2 per cent tax on properties valued between £125,001 and £250,000, 2025 was a good year for those looking to get their feet on the property ladder. With mortgage lenders releasing competitive mortgage products throughout the year as rates fell, we saw a significant increase in the number of people we helped enter the market.

3. Interest rates

Our team of Surrey and Hampshire estate agents banked on 2024 being the year in which the base rate of interest would begin to fall, but it was in fact this year that saw the biggest change. 2025 saw the base rate fall three times, taking it from 4.75 per cent to 4 per cent. With the next announcement taking place on 18 December, it’s quite possible that we could see interest rates at sub-4 per cent as we head into the New Year. The result? An even more fluid property market in 2026 as mortgages become even more affordable and property demand increases.

4. The Budget

Whilst the government introduced a Mansion Tax, which is likely to impact a large number of our clients given the volume of properties worth over £2m in and around Surrey and Hampshire, the good news is that Stamp Duty remained unchanged. The runup to the budget saw people sit tight and defer moving until the Budget announcement provided clarity. Now we have that clarity, we expect a surge in the number of properties that enter the market in Q1 of 2026.

What’s in store for 2026?

As they say, the best things come in threes. And with that in mind, we expect the following three things to have the biggest impact on the Surrey and Hampshire property market in 2026.

1. A return to property price growth

All signs point towards an increase in property prices in 2026. Although we don’t expect it to be dramatic growth, this will no doubt be welcomed by homeowners looking to make their next move. And as our team of Hampshire and Surrey estate agents say, slow growth is sustainable growth.

2. More interest rate reductions

We’re not economists, but with the way things are going we expect to see continued interest rate reductions in 2026. This will act as a further catalyst for property price growth as mortgages become more accessible and the property market gains momentum.

3. A more fluid market 

Now that the government has stuck its flag in the sand and there’s greater certainty, those who wanted to wait for the Budget’s dust to settle will be ready to make their move in the New Year. We’ve already seen a 15 per cent increase in valuation requests compared with this time last year, which leads us to believe that 2026 will be a busy year for the property market. 

Christmas wishes

To those we worked with in 2025, we’d like to take this opportunity to say ‘thank you’ for choosing us. We also look forward to helping new clients as they embark on their next chapter in 2026, too. So, all that remains for us to say is have a Merry Christmas and a very Happy New Year.

Thinking about selling your property in 2026? Contact your local branch of Warren Powell-Richards to discover how we can help. Alternatively, find your nearest Warren Powell-Richards office here.