The UK property market has stepped into 2026 with a noticeably calmer and more confident feel. After a busy end to last year fuelled by stamp duty deadlines and a rush to get deals over the line January has brought something healthier: steady demand, more choice and buyers and sellers who are realistic and committed.
For local movers working with estate agents in Purley or Streatham, and for buyers keeping a close eye on the local market, this is shaping up to be a year of opportunity rather than uncertainty.
Below is our simple, straight-talking update on what’s happening nationally, and what it really means on the ground in Purley and Streatham.
A Market That’s Busy Just Not Frenzied
One of the biggest stories this January was stock. Across the UK, the number of homes for sale was up by around 2% compared with last year, making January the best January for choice since 2015. Buyers finally have options again.
Sales agreed were down year on year, but that’s no surprise after the stamp duty surge at the end of 2025. What matters more is that activity is still slightly above the long-term average. In other words, people are still moving just with their eyes open.
A really positive sign is commitment. Seller withdrawals were almost half what they were a year ago, and fewer sales are falling through. When deals are agreed, both sides are more likely to see them through.
Early Signs Point to a Strong Spring
Behind the scenes, activity is building fast. Conveyancing registrations are up sharply, with first-time buyers leading the charge. Nearly six in ten new registrations are from people buying their first home.
This usually means one thing: momentum heading into spring. February to April is traditionally the best time to sell, and the early indicators suggest this spring could be a busy one, especially for well-priced family homes in South London.
Pricing: Honesty Wins in 2026
There’s a clear gap opening up between asking prices and what homes actually achieve. Nationally, new listings are coming to market at higher prices, but homes that sell are doing so at more modest levels.
The message is simple: realistic pricing works. Over-ambitious asking prices are leading to reductions, while homes priced correctly from day one are attracting viewings and offers.
This is particularly relevant in areas we cover such as Purley and Streatham, where buyers are well informed and quick to compare value street by street.
Mortgages: Better Than Last Year, But Not a Free Ride
Mortgage rates are in a better place than they were this time last year, and that’s had a noticeable impact on affordability. The average mortgage rate has fallen to around 4.9%, down from over 5.4% in January 2025, and buyers now have plenty of choice, with more than 7,000 mortgage products on the market the widest range seen since before the financial crisis.
However, the picture isn’t all one-way. Recent increases in swap rates have slowed the pace of improvement, prompting some lenders to edge rates back up. Markets are also becoming less confident about further interest rate cuts in 2026, with the Bank of England expected to hold the base rate at 3.75% in the near term and future reductions no longer guaranteed.
For buyers and movers, this creates a narrow but workable window: conditions are improved, but careful budgeting and good mortgage advice remain just as important as ever.
Affordability Is Finally Improving
There’s some genuinely encouraging news on affordability. Mortgage payments are now taking up a smaller share of incomes than they were at the 2024 peak, and by the end of this year they’re expected to settle at more manageable, long-term levels. In fact, the house-price-to-income ratio fell to its lowest point in over a decade at the end of 2025, a meaningful shift, especially for London where high prices have long made it harder to move up the ladder.
This has helped bring first-time buyers back in greater numbers, with high loan-to-value mortgages playing a big role in reopening the door to home ownership. That said, 2026 will also be a year of reassessment for many homeowners. Around 1.8 million fixed-rate mortgage deals are due to end, with households coming off ultra-low rates agreed in 2021. As a result, many are reviewing their finances, remortgaging, or deciding that now could be the right time to move.
Purley: Quiet Confidence and Strong Family Appeal
Purley continues to show why it’s such a reliable part of the South London market. Prices have been broadly stable, but what really stands out is volume. Sales activity is up sharply, suggesting that buyers who waited through 2024 and 2025 are now ready to move.
Family houses remain the most in-demand, especially detached and larger homes close to schools and stations. Flats, meanwhile, are proving popular with first-time buyers looking for value and space compared with more central areas.
Ongoing regeneration along the Purley Way and investment in local amenities are helping support long-term confidence, even if buyers are still negotiating hard on price.
Streatham: Resetting, Not Retreating
Streatham has had a more mixed start to the year, largely due to major road and transport works along the A23. Some parts of the area have seen prices soften, particularly around the busiest stretches of the High Road.
However, this feels more like a reset than a downturn. Well-presented homes on popular residential streets are still achieving strong prices, especially when they’re sensibly priced.
Flats dominate the local market, making Streatham a key area for first-time buyers and investors. Once the current infrastructure works are completed, many expect demand to strengthen again, helped by improved public spaces and transport.
Rentals: Calmer, But Still Competitive
Rental growth has slowed compared with the sharp rises of recent years, which will be welcome news for tenants. Supply has improved slightly, easing competition.
Rents in ares we cover like Purley and Streatham remain strong, supported by good transport links and continued demand from professionals and families. Quality and presentation now matter more than ever, as tenants take longer to decide and have more choice.
What This Means If You’re Moving in 2026
This is a market that rewards preparation and good advice. Buyers have more leverage, but sellers who price well and present properly are still achieving great results especially when they’re guided by agents who truly understand the local landscape. That’s where Haboodle’s on-the-ground experience with offices in Purley and Streatham really comes into its own, helping clients make confident, well-timed decisions.
Local knowledge genuinely makes a difference. Streets, school catchments, transport links and even ongoing roadworks can all influence value, and having expert local insight can be the key to getting the best possible outcome.
Final Thoughts: A Sensible, Positive Year Ahead
The beginning of 2026 set the tone for a steady and balanced property market. The panic and pressure of previous years has eased, replaced by something far healthier: informed buyers, committed sellers and improving affordability.
For homeowners in our areas including Purley and Streatham, this is a market where realistic expectations meet real opportunity. With spring around the corner, the signs are encouraging and for many movers, 2026 could be exactly the right time to take the next step. For tailored advice and expert local guidance, the Haboodle estate agents in purley team is on hand to help you move forward with confidence.