2026 - What's ahead for us all in the world of Property?

What's ahead for 2026? 

Hopefully less drama and a little more consistency..... 

Another year of ups and downs in the world of property, just when we thought things couldn’t get any worse after the previous few years, here we are! The first half of 2025 saw signs of a glimmer of recovery and slowly through the spring, we felt some of the pressure lifting from a catastrophic few years of the Covid boom, the interest rate rise induced decline and change of government with hopes of a better year.

Alas! With press speculation rife and news each day reporting signs of recovery and green shoots and then caution, doom and a further potential crisis, the news of tax changes and a potential budget disaster forced many people to ground to reconsider their options.

Landlords have been in a state of constant anxiety with the Renters Rights Act promising to create chaos for landlords and agents alike and many excellent landlords made the hard decision to sell investment stock, which in our experience predominantly sold to first time buyers.

Nationally, rental supply has reportedly fallen by around 13% compared with pre-pandemic levels, while demand remains much higher, which tells you everything about the pressure renters are still facing. Meanwhile, average UK house prices have hovered around 3–5% below their 2022 peak, depending on region — not a crash, but definitely a wobble.

The mortgage market began to ease some restrictions with lenders offering slightly more competitive deals, however anyone with a high-rise apartment for sale in the city has had to accept plummeting values with the Building Safety Act complications, non-qualifying leaseholder stipulations, soaring legal costs, and mortgage lenders refusing to lend where service charges are high, or where they are located within reach of certain commercial premises. 

Fast forward to autumn and the market died a sudden death at the hands of Rachel in accounts who starting to preach about property tax changes and landlord charges handing the market an early Christmas by pushing the autumn budget back by a month to the end of November. Fortunately, the actual budget didn’t match the speculation and we are hopeful (eternally) of a better year for 2026.

End of Year 2024 at Spencer - Opening Hours for Christmas 2024

 

It seems to have been a tumultuous few years for the property sales market and we are hoping that people are going to finally start to bite the bullet and “just get on with it”. 

In 2024 we seem, once again, to have been plagued with buyer indecision with the year starting slowly and then with the market stalling at the announcement of the general election and the uncertainty of changes to policy in the lettings and sales markets. 

Unfortunately, the change of government and changes afoot to Renters Rights as well as stamp duty, inheritance tax and unclear policies to come not yet defined, many property owners haven’t sprung into action, unless it is to dump HMO properties and rentals. 

Sheffield has seen a monumental drop in university applications this year creating further confusion and a surge of investment stock onto the market, many of which have reverted to residential ownership. 

We keep saying that nothing else can stall the market after riding storms of a global pandemic, the war in Ukraine, global political uncertainty and changes to the world’s leading countries, a change of government, 14 increases in interest rates, chaotic policies, and political indecision, however, what else can possibly go wrong? (*crosses fingers in hope*) 

Aspirational movers are the ones we want to see back in the game, with a hope that the top end of the market will slowly start to improve, as the first time buyer market has been pretty consistent throughout the year. 

Looking forward to 2025, we see a steady confidence returning and an acceptance of the government change forcing buyers to get on with their lives with some ambition in mind instead of standing still. We live in hope!

It has been an exciting year at Spencer, with the formation of the Trust and the company being sold into employee ownership. The team here are all staying and hoping to see and hear from our clients over the next year and beyond. 

The biggest reason that people come to Spencer is through recommendation or repeat business and we thank you all who recommend us and return to us, we couldn't be here without you. A heartfelt "thank you" from all Team Spencer who wish you all a Merry Christmas and a Happy New Year! 

Sheffield Market Prediction 2024 - Spencer of #Sheffield

What is coming our way in 2024?

2023 was a rollercoaster year, starting with a bewilderment hangover from the end of 2022 and Ms Truss’ atomic bomb mini budget. 

The year in our region seemed unaffected until we got to the summertime, when we really started to see a decline in interest and where people seemed to be hanging on for the perceived “bottom” of the market. 

Through Q4, the market was stronger, more stable, people seemed more resilient to the idea of the interest rates remaining as they are, the utility prices coming down helped ease some cost and expenditure worries, and into 2024 we feel this steady confidence will remain. 

The ambitiousness of fast climbing in the housing market has tamed, which is no bad thing, and people are wholly more sensible with their outlooks of the cost of living remaining high and therefore affordability remaining tight. 

2024 looks likely to start slowly but to pick up somewhat into spring summer as the days get longer and hope returns with gusto – we are anticipating a steady year ahead, hopefully with fewer surprises than the last four years of worldwide unavoidable turbulence.

To view our properties, head to www.spencersestateagents.co.uk 

Photos are in from our 10th Birthday Party! Thanks so much to S6 Photography #Spencer #Sheffield

Credit S6 Photography 

Venue 99 Mary Street