England's housing market in spring 2026: rates are falling, demand is recovering

Spring 2026 in the UK housing market is unfolding in conditions the country has not seen since early 2022: the Bank of England has consistently lowered the base rate from its peak of 5.25% — by the start of 2026 it had fallen to 4.25%. This is gradually feeding through into mortgage conditions: two-year fixed rates for borrowers with good credit profiles have dropped to the range of 4.4–4.9%, compared to 5.5–6% in 2023. For a market where most buyers use a mortgage, a reduction of even half a percentage point means a tangible increase in the number of people who can afford to buy.

According to Halifax and Nationwide, which track average house prices monthly, prices at the start of 2026 are in the range of £265,000–£270,000 nationwide, with moderate annual growth of around 3–4%. London remains a separate story: the average price in the capital exceeds £520,000, and in the most sought-after areas — Knightsbridge, Marylebone, Islington — prices are an order of magnitude higher. For international investors, London property traditionally serves as the main object of interest, although a number of northern cities — Manchester, Leeds, Edinburgh — have shown higher percentage yields in recent years with a lower entry threshold.

Foreign buyers in the UK are not restricted in ownership rights: citizens of any country can purchase residential and commercial property without first obtaining a visa or permission. The key financial condition that is often forgotten is the Stamp Duty Land Tax surcharge of 2% for non-residents. It applies to the entire transaction amount above the standard thresholds. For a property costing £400,000, this means an additional £8,000 in tax compared to a UK resident.

After the temporary reduction in Stamp Duty thresholds ended in April 2025, the market went through a period of short-term activation — when buyers rushed to close deals before the return to standard rates — and has now returned to a calmer rhythm. Supply in the market is growing: the number of properties listed in spring 2026, according to Rightmove, is higher than in the same period last year, giving buyers more time and bargaining power. This is especially noticeable in the sub-£300,000 segment, where competition has decreased most significantly.

For Russian-speaking buyers considering the UK as a destination for capital preservation, the key legal conditions have remained unchanged since 2022: sanctions restrictions apply to individuals on sanctions lists, but do not automatically extend to all Russian citizens. Each transaction undergoes a KYC/AML check, and engaging a UK solicitor specialising in transactions with non-residents is a mandatory condition for successful completion.

Property in the UK — London and other cities: discount-house.com/england