Sellers adjust expectations
Jeremy Leaf, north London estate agent and former RICS residential chairman, said asking prices are losing their grip on reality. “In our offices, sellers wanting to attract genuine buyers have been obliged to accept a larger dose of realism when it comes to asking prices, which are increasingly recognised as an aspirational starting point only,” Leaf said.
He pointed to flat inventory as a growing obstacle for entry-level buyers. “The amount of available stock — particularly flats — as well as concerns about the cost of living and mortgage rates, are making first-time buyers nervous about making financial commitments so the market is becoming even more price sensitive,” Leaf said.
Leaf added that prolonged deal timelines are creating further risk. “Most sales are holding up but that lingering uncertainty about economic prospects is prompting lengthier transactions, which in turn increases the risk of further re-negotiation or even collapse,” he said.
According to RSM UK’s Q1 2026 housing tracker, completions reached 269,000 in the first quarter, around 30,000 below the five-year quarterly average, with transactions and volumes remaining below historic norms.
Needs-based demand keeps sales moving
Tomer Aboody, director of specialist lender MT Finance, said reduced buyer conviction is reshaping the market. “There is a lack of confidence in the housing market as buyers adopt a more cautious approach and are not prepared to pay over-the-odds, particularly when they have so much choice,” Aboody said.