The Intermediary – January 2026 - Flipbook - Page 21
RESIDENTIAL
Opinion
tions for 2026
an average UK house price this year
of 2% to 4%. Meanwhile, Halifax
reported a 0.6% dip in prices in
December, following a 0.1% drop
the previous month, and forecasts
a “modest rise” in prices this year of
between 1% and 3%.
The increase in available stock has
put buyers in a stronger negotiating
position and this is keeping a lid on
price increases, while affordability
pressures persist, even with the rate
reductions.
Regional change
National average house prices are
useful to a degree, but they can conceal
significant regional differences
which buyers may wish to pay closer
aention to. Northern Ireland saw a
7.5% increase in house prices last year
with an average price of £221,062,
compared with a 1.3% fall in prices
in London and an average price of
£539,086, according to Halifax.
This underlines the impact of
affordability on buyer budgets with
homebuyers in the south finding
it particularly difficult to raise the
deposits they need and satisfy lenders
that they can afford their monthly
mortgage repayments.
Total outlook
2025 was a year of uncertainty for
landlords as the Renters’ Rights Act
made its way through Parliament.
We now know the first phase is due
to become law on 1 May, which at
least will enable landlords to plan
ahead. On the lending front, mortgage
pricing has eased, with more product
choice for landlords buying via a
limited company or moving existing
portfolios into such a structure as
more investors go down this route.
With the Chancellor announcing
additional tax on rental income in the
Budget, it is increasingly difficult for
landlords to make money if they have
an investment property in their own
name. We had countless enquiries
last year from landlords considering
incorporation.
The timing of an incorporation is
very important as the mortgage broker
needs to work with the landlord’s
accountant to ensure it is done in the
most tax-efficient way, but this is an
area of business we expect to keep us
busy in 2026.
In terms of the outlook for mortgage
brokers, independent advice will be
more important than ever. Keeping
on top of what’s available, particularly
rate changes, and making sure clients
get the best product for them will keep
us busy in 2026.
Here’s hoping for a more positive
and productive year for the
housing market. ●
