Friday, 6 November 2026
Britain’s residential property market is facing renewed pressure from rising borrowing costs, weaker buyer interest and a large number of homes available for sale. In a trading statement published on 6 November 2026, property platform Rightmove reported declining buyer enquiries and fewer agreed sales, alongside continued difficulties in the new-build sector. The findings provide an indication of changing market conditions, although they are based on the company’s own market monitoring rather than official national housing statistics.
Rightmove reported that buyer demand had declined by 10%, while agreed property sales were 9% lower. The company attributed the weaker activity partly to uncertainty over interest rates and household finances. It also noted that the number of homes available for purchase remained unusually high, increasing competition between sellers. At 31 October 2026, its average house-price measure was 0.3% below the corresponding level a year earlier. This reflects advertised property prices rather than the amounts ultimately paid when transactions are completed.
Mortgage financing has become a more significant obstacle for prospective purchasers. According to Rightmove, the average quoted interest rate for a five-year fixed mortgage increased from 5.0% on 30 June to 5.5% on 31 October 2026. The increase followed changes in financial-market expectations and preceded further concerns about borrowing costs in 2027. Higher mortgage rates can reduce household purchasing budgets and increase monthly repayments, particularly for first-time buyers and existing homeowners approaching the end of fixed-rate agreements.
The effects are also being felt by residential developers. Rightmove reported that the number of active new-home developments represented on its platform was 6% lower at 31 October than at the end of December 2025. This measure concerns developments marketed through the company and should not be interpreted as a direct reduction in national construction output or housing completions. Nevertheless, the decline indicates a challenging environment for housebuilders seeking to attract purchasers and maintain development activity.
The government’s proposed Your First Home initiative has provided some encouragement to developers, according to Rightmove, but its implementation remains a determining factor. The scheme is expected to begin during the second quarter of 2027, with any meaningful effect on housebuilding volumes unlikely until later that year. For developers, the timing of support measures is important because decisions about land acquisition, construction starts and project financing often need to be made well before homes become available for sale.
Conditions in the rental market were comparatively stronger. Rightmove reported an increase in enquiries for each available rental property, while advertised rents were 2.9% higher than a year earlier. These figures indicate continued competition among prospective tenants, although they do not measure changes in rents paid under existing tenancy agreements. The contrast between rental interest and weaker purchasing activity may be relevant to investors in professionally managed rental housing, but the company did not establish a direct causal relationship between the two trends.
Despite the difficult residential market, Rightmove expects its own financial results to improve. The company forecasts revenue growth of 6% to 7% in 2026, with underlying operating profit increasing by at least 3%. It has raised its expected growth in underlying earnings per share from at least 5% to at least 7%. For 2027, Rightmove anticipates revenue growth broadly similar to 2026 and underlying operating profit growth of between 4% and 7%, supported by additional digital services, operational improvements and cost management.
For developers, lenders and residential investors, the latest statement highlights the continuing importance of mortgage affordability and consumer confidence in determining housing-market activity. Reduced buyer interest may influence the timing of new residential projects, while sustained rental demand could support investment in alternative housing models. However, Rightmove’s measures should be considered alongside official transaction statistics, construction data and household earnings before drawing wider conclusions about the direction of the UK housing market.
