The residential property sector opened 2026 with a nuanced performance profile, balancing sustained market engagement against persistent housing cost pressures, according to Propertymark's latest market intelligence analysis.

Transaction activity demonstrated resilience, with prospective purchaser registrations maintaining equilibrium at 74 per member branch—evidence of enduring buyer appetite amid macroeconomic headwinds. Yet affordability constraints continue to weigh on households, as 29% of adults characterized their ability to meet housing obligations as 'very or somewhat difficult' throughout the late December 2025 to early January 2026 measurement window.

The rental segment exhibited intensifying supply-demand imbalances. Fully managed property listings contracted marginally to 3.87 per member branch, while competitive intensity remained elevated with seven applicants vying for each available unit during January 2026. This convergence of stable buyer engagement, mounting affordability barriers, and acute rental inventory shortages underscores the complex equilibrium characterizing the year's opening market conditions.

Nathan Emerson, CEO of Propertymark, observed: "January's market indicators reveal a housing sector experiencing measured post-holiday recovery. With the Bank of England maintaining its 3.75% base rate and above-target inflation continuing to shape borrowing dynamics and consumer sentiment, we're observing notable resilience across both sales and lettings channels.

"Property viewings climbing to 2.2 per listing, coupled with market appraisals advancing to 21 per branch, suggest vendors are entering the year with strengthened conviction and readiness to list inventory. Concurrently, the incremental rise in agreed sales demonstrates sustained buyer participation, though affordability headwinds and broader economic conditions mean below-asking negotiations remain prevalent.

"The lettings landscape continues experiencing demand substantially exceeding available stock, with seven prospective tenants competing per property on average. While inventory levels have registered modest gains, supply constraints persist, positioning this imbalance as a defining challenge for renters and agents throughout the coming months.

"Collectively, the data characterizes a market undergoing stabilization rather than acceleration. Activity is rebounding from seasonal deceleration, though recovery velocity will remain tightly coupled to inflation trajectories, monetary policy adjustments, and macroeconomic confidence evolution across 2026."