Is 2026 a Good Year to Sell Your Home?

If you’ve been watching the property market like a curious North Londoner hawk, you may have spotted a theme: 2026 is shaping up to be a pivotal year for sellers. After a period of uncertainty in 2025, the housing market is rebounding, but it’s doing so with its own rhythms and nuances. For homeowners in North London and beyond, understanding what’s driving buyer confidence, how mortgage rates are evolving, and when demand tends to peak could make the difference between a smooth sale and a stalled one. So buckle in, sellers, we’re hitting the market…

What Held the Market Back in 2025?

Last year’s Autumn Budget generated more questions than answers for moving households. Rumours about property tax changes – including a future High Value Council Tax Charge and adjustments on dividends and income – lingered in buyer minds long before they were confirmed. That political uncertainty dampened activity, particularly in higher-value segments and laid the groundwork for some sellers to hesitate. As we rolled, wooly-hatted into the winter months, data from Rightmove and Zoopla showed average asking prices slightly lower than a year earlier, and new seller activity dipped in late 2025.

But Here’s the Turnaround: Early 2026 Market Signals

Yes, there are reasons for optimism: mortgage rates have begun to fall in the opening weeks of 2026 as lenders compete to attract buyers. Major banks have reduced fixed-rate deals following the Bank of England’s base rate cut to 3.75%, and there’s renewed appetite among first-time buyers and move-up purchasers. (Financial Times)

Zoopla reports that the number of homes listed for sale is currently at an eight-year high – a sign that many sellers who waited in 2025 are now ready to make a move. Property experts broadly forecast modest but positive price growth for 2026. Rightmove anticipates average asking price growth of around 2% by year-end, with similar modest forecasts from other major indices. (Rightmove) This combination of increased stock and slightly lower borrowing costs, can incentivise both sides of the market. Sellers finally listing with confidence, and buyers returning to viewings and offers.

Where North London Fits In

London’s property landscape continues to differ from the rest of the UK. In 2025, data showed that a higher proportion of homes in London were sold at a loss than anywhere else in England and Wales. Flats, in particular, were under pressure, with nearly a quarter selling below original purchase price. (Financial Times) For sellers in inner and outer North London this means two things: The right pricing strategy is even more critical than usual, especially in segments where oversupply or slower demand persists. Stock and buyer behaviour can vary significantly from postcode to postcode – and while some areas may see quicker sales and price stability, others will require more tactical marketing and competitive positioning.

Buyer Confidence Is Growing – But Still Cautious

Borrowers are showing signs of returning to the market, helped by improving affordability: mortgage rates for two- and five-year fixes are generally below recent peaks, and some lenders are easing criteria slightly to broaden access. (Financial Times)

However, buyers remain mindful of wider economic conditions, from wage growth to job security, and decision-making is still careful rather than impulsive. This means that sellers who present a well priced, nicely staged home are far more likely to generate strong interest than those who overprice at the outset. Time to dust off those pretty throws and adjust the mood lighting…

The Monthly Market Rhythm Matters Too

Traditionally, the market peaks in spring and early summer: March through June is when buyer activity historically surges – often driven by seasonal motivations, school calendars, and people planning moves before autumn. With many households holding off in late 2025, the spring bounce in 2026 could arrive earlier and be more pronounced as buyers catch up on postponed plans. Later in the year, particularly in mid winter, competition often decreases and listings slow, which can give well priced homes extra visibility.

What Sellers Should Do Now

If you’re thinking about putting your home on the market this year, here are thoughtful steps (beyond the usual checklist):

• Get a local, data-backed valuation – North London micro-markets differ widely, and professionals who live and breathe your neighbourhood offer an edge.
• Invest in presentation – investing in small cosmetic updates and professional staging usually yields dividends when buyer confidence is cautious.
• Price with perspective – erring slightly below unrealistic expectations often drives competitive bids and faster sales.
• Plan your timing – early spring listings benefit from fresh buyer demand; early in the year when competition is still stabilising can also be strategic.
• Prepare for negotiation – with choice still high in some segments, buyers may expect flexibility on price or terms.

So, Is 2026 a Good Year to Sell?

Yes – if you approach it strategically. The market environment is shifting: mortgage rates are easing, buyer interest is rising, and forecasts point to stable or modest growth in prices. But it’s not a “rush to list” situation where sellers can set any price they like. In a market where supply is healthy and buyers are cautious, pricing, staging, and timing are even more important than headlines about growth.

For sellers in North London – a market with deep demand but nuanced local variations – thoughtful preparation and expert guidance will make 2026 not just a good year to sell, but a well prepared one.

Contact us:

mark@daviesdavies.co.uk – Sales Director (contact for sales, lettings and new homes)

katrina@daviesdavies.co.uk – Director of Property & Block Management (contact for property and block management)

Davies & Davies Estate Agents, 85 Stroud Green Road, London, N4 3EG

Article & images by Barefaced Studios

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