As we move into 2026, the London housing market feels noticeably different to this time last year.
Much of 2025 was defined by hesitation. Buyers and sellers were waiting to see what would come out of the autumn Budget, where interest rates would settle, and whether prices would soften further. That uncertainty slowed activity, even in areas where demand never truly disappeared.
That pause now looks to be over.
Buyers and sellers are re-entering at the same time
One of the clearest indicators of renewed confidence is in conveyancing data. Registrations, often a strong signal of genuine intent to move, are up 74% year on year. In simple terms, more people are committing to a move rather than just talking about it.
What’s notable is that this isn’t being driven by sellers alone.
We’re seeing more homeowners bringing properties to market after delaying plans late last year, and more buyers returning with a clearer sense of affordability and what represents fair value. That combination is important. It creates activity without overheating.
What this looks like locally
London-wide growth may be modest in 2026, but in inner boroughs like Hackney and Islington the picture is one of stability and demand rather than drift.
Average prices in Hackney were holding firm towards the end of 2025 at around £628,000, with Islington closer to £684,000. These are markets underpinned by long-term desirability, not short-term sentiment.
The difference this year is mindset. Buyers are no longer waiting for prices to fall. Sellers are no longer holding out for yesterday’s market. Both sides are more aligned, which is why transactions are starting to move again.
As our Sales Director Peter May puts it:
“We’re seeing far more confidence than this time last year. Buyers are back, sellers are motivated, and when homes are priced sensibly, deals are being done.”
What this means for 2026 moves
For sellers, there is a real opportunity as buyer demand strengthens. Correct pricing remains essential, but the depth of demand is healthier than it was twelve months ago.
For buyers, increased stock levels mean more choice and better alignment between price and value, without the pressure of the ultra-competitive conditions seen in previous cycles.
Overall, 2026 is shaping up as a year of normalisation in the best sense. Fewer false starts, more decisive moves, and a market driven by confidence rather than caution.
If you’re considering a move in Hackney, Islington or nearby, local context matters more than national headlines. Understanding how buyers are behaving on your specific street, not just in your borough, is what makes the difference. Click here, if you’d like an expert’s insight to your 2026 moving plans.
