Guides Summer 2026 Property Market Update: Tough Market, Big Opportunities

Every time I sit down to write one of these market updates, it seems the political landscape has changed yet again. Kier Starmer has resigned, and Andy Burnham is our new Prime Minister, and we have already seen the former Mayor of Manchester making plenty of noise about housing.

One of the most interesting recent developments has been Andy Burnham’s call to give local authorities greater powers and resources to build more social housing, calling for the biggest social housing drive we’ve seen since the end of the Second World War. And, in fairness it’s those kinds of numbers that are needed to reach the housing targets set by Kier Starmer’s government.

Whatever your political views, uncertainty remains the biggest influence on the property market. Whether it’s geopolitical tensions in the Middle East or ongoing economic concerns closer to home, uncertainty makes people hesitate. Buyers delay decisions, sellers become unrealistic, lenders become more cautious, and markets naturally slow.

So, with politics changing almost weekly and market conditions continuing to evolve, where does that leave property investors this summer? Here’s my view.

Residential Market

The residential market is firmly in buyers’ favour.

Around one-third of properties have reduced in price over the last month, there are more homes on the market than at any point in the last eleven years, and prices have softened for three consecutive months.

For sellers, this means pricing correctly from day one is more important than ever. The days of putting a property on the market above its true value “just to see what happens” are over. Buyers have plenty of choice and are becoming increasingly selective.

Despite these headwinds, our estate agency businesses across Norfolk and Suffolk continue to perform relatively well, demonstrating that good advice and realistic pricing still produce results.

The Housebuilders

The country’s largest housebuilders continue to face a difficult market.

Across the major developers, average sales rates have fallen to around two homes per month per site. For most independent developers, selling less than one property each week would be disappointing, so these figures highlight just how cautious the market has become.

Higher mortgage rates, economic uncertainty and slower second-hand sales are all contributing factors. If homeowners struggle to sell their existing property, they simply can’t move into a new-build home.

Auctions Continue to Offer Value

I’ve said many times that the auction market acts as the property’s early warning system.

What happens in auction rooms today often filters through into the wider market six to nine months later.

With fewer bidders competing for stock, buyers have greater opportunities to purchase well. Every month there are around 3,500 properties offered at auction across the UK. If you’re actively looking for opportunities, there has rarely been a better time to study auction catalogues carefully.

Challenges for SME Developers

For smaller developers, it’s undoubtedly a tougher environment.

Construction costs remain stubbornly high while sales values have largely plateaued. In many areas of the country, particularly where completed values fall below around £350 per square foot, traditional new-build development has become increasingly difficult to justify financially.

However, conversions continue to present attractive opportunities.

I’m currently advising several consultancy clients on conversion projects, and these schemes often stack up far better because conversion costs are typically lower than new-build construction.

Perhaps more importantly, many developers are no longer relying on selling completed schemes. Instead, they are refinancing and retaining quality assets for the longer term, creating income-producing portfolios rather than immediate profits.

Flexibility Creates Opportunity

One of the biggest changes I’ve seen over the last twelve months is the willingness of vendors to become more flexible.

When markets slow, sellers become far more open to different ways of structuring transactions.

Subject-to-planning purchases, delayed completions, lease extensions, phased acquisitions and a variety of creative deal structures are becoming increasingly achievable.

I’ve recently produced a YouTube video covering ten different ways to structure property purchases, because in today’s market flexibility is becoming one of an investor’s greatest advantages.

Cash Flow Is King

Almost every developer I speak to is experiencing the same challenges.

Projects are taking longer to complete. Build costs are coming in higher than expected. Refinancing is releasing less capital than anticipated.

The result is that developers have less money available for their next project, slowing activity across the market.

Ironically, this also creates opportunity. With fewer active buyers competing for stock, well-funded investors are finding themselves in a much stronger negotiating position.

Where I’m Seeing Opportunity

Despite the headlines, I’m extremely optimistic about the next twelve months.

Personally, I’m actively looking to acquire residential and commercial portfolios where the numbers make sense.

Commercial property continues to receive a great deal of negative publicity, yet over the last few months we’ve successfully let three retail units. That tells me that while parts of the market remain challenging, demand certainly hasn’t disappeared.

For investors who are well capitalised, prepared to negotiate creatively and willing to take a medium to long-term view, I believe this market offers some of the best buying opportunities we’ve seen for several years.

Yes, it’s a tougher market than we’ve experienced in recent years, and many developers are feeling the pressure.

But property has always rewarded those who stay patient, adapt their strategy and remain disciplined. The key is understanding where the opportunities are, buying well, and having the confidence to act when others are standing still.