2026 has started with some uncertainty in the property market. Price falls in the south of England have been reported by some institutions and lenders.
In West Yorkshire we see a more fragile market than a couple of years ago, but there is still activity.
Purchasers are certainly negotiating more keenly. The sellers’ market of 2023 and the post-pandemic recovery are clearly over.
The HMO (Houses In Multiple Occupation) market has fallen noticeably in some areas. Many workers from Eastern Europe have returned home, some Universities are struggling financially and have cut courses, and consequently the availability of tenants has dropped. Our specialist HMO valuations have shown a jump in yields in some locations as landlords have increased their rents to cover increased costs, increased taxes, and increased risks from legislative changes. In some locations, there is clear evidence of HMOs being converted back to family dwellings, or let as corporate lets to supported housing providers, and accommodation for vulnerable tenants. The mainstream buy-to-let market has also shown some fragility. Some landlords have exited the market entirely, and others have increased rents to cover increased taxes and increased risk from legislative changes. This may all sound very negative, but with the right research, sensible planning, and appropriate purchase pricing, there are still opportunities for house buyers, whether for owner-occupation or for letting.