June 19, 2026
The UK property market is currently undergoing a massive structural shift. For prospective buyers, sellers and landlords, understanding the forces driving today’s prices is the key to making a successful move. If you’ve been watching the headlines, the message is clear: it is currently a fantastic time to buy, but a challenging time to sell.
The Global Tug-of-War Driving Prices
A major force in the current sales market is the weight of overseas capital. According to Savills, “overseas capital has grown significantly.” Foreign investors still view the UK as a stable investment haven, a sentiment only enhanced by protracted conflicts in the Middle East.
Because these international investors – and scalable corporate buyers – can borrow money globally at lower interest rates than local UK buyers, they can afford to pay premium prices while maintaining a profitable investment. They are actively bulk-purchasing average-priced properties to target the local rental market. This massive influx of cash drives up prices and effectively boxes out local buyers and smaller-scale landlords who are already hesitant due to high domestic interest rates. However, it isn’t an entirely smooth road for foreign capital; increased taxation rates and surcharges are beginning to drive some international investors out.
Domestic Roadblocks: Mortgages and Service Charges
Closer to home, local buyers are facing a different set of challenges. One such example is affordability: higher interest rates on mortgages have impacted affordability, which in turn has applied downward pressure on property prices.
At the same time, leasehold property owners are battling soaring service charges. These hikes are being driven by inflation, contributing to several increases, such as escalated building insurance and utility costs. London’s market has been hit particularly hard, where leasehold rentals make up a significant portion of available housing.
What London Property Broker Expects in the Next 6 to 12 Months
We anticipate an increase in the number of properties coming to market over the next 6 to 12 months. This is largely due to many homeowners reaching the end of their fixed-rate mortgage terms. As they face the prospect of refinancing at interest rates that are significantly higher than those secured when their original fixed-rate deals were arranged, some may choose to sell, while others may be compelled to do so due to affordability pressures.
Despite this pending wave of stock, a sudden market crash is unlikely. Savills recently noted:
“Rather than a surge in stock, the market is seeing a steady release of opportunities, which continues to underpin liquidity and pricing discovery.” – Savills
The Bottom Line: Opportunity for Buyers
However, if you are a cash buyer or have competitive financing, now is an exceptional time to buy. Furthermore, the rental market remains incredibly robust and strong, offering fantastic yields for landlords – particularly in prime London locations, which are booming for foreign investors (read more about this in this London Property Broker blog).
Currently, property owners’ confidence remains low. Many are hesitant to lower their asking prices further, as doing so could result in selling at a greater loss. As a result, a significant amount of overseas capital is currently sitting on the sidelines, waiting for the right opportunities to emerge.
Sources:
Savills UK | Investment market trends
Speak to London Property Broker
Whether you are looking to acquire an investment piece or safely manage your current portfolio through these shifting waters, reaching out to our experienced team here at London Property Broker can help you capture these opportunities before the window closes.