2026 Property Market Outlook:
At FSS, we believe in doing things properly and that includes helping our clients stay informed with real, relevant market insight. That’s why we’re sharing highlights from the latest economic snapshot by David Fenton, Chief Economist at TSB, along with what it could mean for buyers, sellers, and landlords in and around Harrogate this year.
After a sharp rise through 2022 and 2023, interest rates are beginning to soften. The Bank of England voted to hold rates at 3.75% in February 2026, but a further cut, possibly to 3.25%, is widely expected later this year.
For buyers, this shift could make borrowing more affordable. For sellers, it’s a sign that confidence is starting to return.
House prices: Modest growth, more stability
Nationwide data shows UK house prices have risen by 1% year-on-year, with the average property now valued around £271,000. While not a boom, it reflects a healthier, more balanced market, especially when paired with improving mortgage affordability and steady demand.
In Harrogate and surrounding villages, we’re seeing a similar pattern: well-presented homes, priced realistically, are moving well.
Lending & buyer demand: Picking up pace
The mortgage market has bounced back strongly. Gross lending reached £291 billion in 2025, the highest since 2021. Residential property transactions are now back to pre-pandemic levels, with around 100,000 completed each month.
This activity shows that people aren’t waiting, they’re moving with intention, and the market is responding.
So, what does this mean for you?
If you’re buying, selling, or investing in 2026, it’s not about chasing peaks or timing the market perfectly, it’s about making informed decisions in a more stable landscape.
Why FSS?
We’ve been working across Harrogate and the surrounding area since 1994, helping clients navigate every kind of market with clear advice, honest valuations, and proper care.
As the only fully comprehensive property agency in Harrogate, our reputation is built on experience, not hype. Whether you’re making your first move or rethinking your portfolio, we’re here to help you do it right.
Get in touch with the FSS team or pop into our office in Harrogate.