Market insight 2026

The property market entered 2025 in a cautious but stabilising position. Inflation eased, mortgage rates began to soften, and the base rate peaked — bringing a degree of predictability back to the landscape after several turbulent years.

However, affordability remained stretched and buyer confidence fragile. Much of the year was shaped by speculation around interest rate cuts. When it became clear reductions would be gradual rather than dramatic, the market adjusted accordingly. Activity improved in more affordable sectors, while higher-value and prime markets across London and the South East moved more slowly.

The general election briefly boosted sentiment, but attention quickly shifted to the Autumn Budget. Concerns around fiscal tightening and property taxation caused hesitation, particularly among discretionary movers. As the year closed, the reality proved less severe than many anticipated — and confidence began to rebuild.

Transaction levels in 2025 remained below long-term averages, yet importantly, pricing held broadly stable. Northern regions outperformed, while London and parts of the South East saw flatter conditions.

What This Means for Prime Hertfordshire

Unlike recent years, 2026 is shaping up to be more predictable.

Our latest forecasts point to a year of greater stability, followed by a gradual but sustained recovery across the prime residential markets over the next five years. Growing buyer confidence and clearer policy direction are expected to support prime markets in the near term. Looking further ahead, improving economic conditions and structurally lower interest rates should underpin stronger performance.

In areas such as Nascot Wood, Cassiobury, Moor Park and the wider prime Hertfordshire market, we are already seeing:

• More committed, needs-based buyers
• Realistic, evidence-driven pricing strategies
• Strong competition for well-presented family homes
• Continued sensitivity to overpricing

The key distinction in this market is strategy. Homes that are correctly positioned and professionally presented are selling. Those launched optimistically or without a clear plan are stagnating.

Prime buyers remain active — but they are analytical, well-advised and value-driven.

Rental Market: Rebalancing, Not Retreating

Rental growth moderated in 2025, as expected, following several years of sharp increases. According to HomeLet, the average UK rent reached £1,317pcm (up 2.6% annually), while London averaged £2,129pcm (up 2.8%).

Affordability pressures are now acting as a natural ceiling on rental growth. However, fears of a mass landlord exit have not materialised. Supply remains constrained, and demand — particularly in well-connected commuter locations such as Watford — remains resilient.

Most forecasts suggest rental growth of around 2% nationally in 2026 — sustainable, rather than explosive.

The Rolstons View

After several years of volatility, we are entering a more rational market cycle.

This is not a boom phase. It is a stability phase — and that creates opportunity.

For sellers: realistic pricing combined with strong marketing and negotiation remains critical.
For buyers: improved mortgage conditions and greater choice offer strategic entry points.
For landlords: steady yields and tenant demand continue to underpin long-term fundamentals.

The market is no longer driven by headlines. It is driven by strategy.

If you are considering selling, letting, or simply reviewing your position in 2026, we would be delighted to offer tailored advice based on current local evidence.

Warm wishes

The team at Rolstons