Stamp Duty Stagnation, Leasehold Reform, 2026 Market Outlook & Planning Surge

The UK property market is entering a steadier phase in 2026. Stamp duty is keeping owners locked in their homes. Leasehold reform is finally taking shape. Planning applications are surging. Mortgage rates are falling. In the latest London Property Bulletin episode, host Farnaz Fazaipour unpacks these shifts. She explains why fewer people are moving than ever and what the year ahead holds for buyers, sellers, landlords and investors. This guide gives you the full picture and practical steps to stay ahead.

Stamp Duty Stagnation: Why Owners Aren’t Moving

Stamp duty has become the biggest barrier to moving home in the UK, especially in London.

High rates and recent surcharges mean the average mover now pays £15,000–£25,000 in stamp duty on a typical upgrade. In prime London, that figure easily tops £100,000. The result is clear: home moves have fallen to their lowest level in decades. Owners are staying put rather than face the tax hit. This locks up supply and keeps prices artificially supported in many areas, even as demand cools.

Homeowner Move: If you’re thinking of upsizing or downsizing, run the stamp duty numbers early. Consider areas below key thresholds (£1.5M or £2M) to minimise the bill.

Leasehold Reform: What Changes for Leaseholders & Landlords

Leasehold reform is finally delivering real change for millions of flat owners.

New laws allow leaseholders to extend leases to 990 years at zero ground rent. Service charge transparency rules are tightening. Marriage value has been abolished for most extensions. Landlords and freeholders face caps on excessive charges and easier challenges at tribunal. The reforms are already adding 3–8% to flat values in prime postcodes.

Leaseholder Action: Start your lease extension now. The new rules make it cheaper and simpler than ever. Landlord Note: Review service charge structures. Transparency is no longer optional.

2026 Market Outlook: Steady Growth & Falling Rates

Experts forecast a calmer, more predictable UK property market in 2026.

Modest price growth of 3–5% is expected nationwide. London should see 2–4% rises as supply constraints ease slightly. Mortgage rates are set to fall further, with five-year fixes dipping below 4% by mid-year. Buyer activity is picking up outside the capital, especially in commuter belts and regional cities. Confidence is returning after years of uncertainty.

Buyer Opportunity: Lock in pre-approvals now. Falling rates will increase competition later in the year.

Planning Surge: Developers Gain Confidence

Planning applications have reached their highest level in years. Developers are finally feeling optimistic again.

Fast-track reforms and clearer local targets are speeding approvals. Mixed-use schemes and build-to-rent projects are leading the charge. Renovation activity among existing homeowners is also rising as people improve rather than move.

Investor Insight: Watch regional cities and outer London zones. New supply here will offer the best rental yields and capital growth in 2026.

Energy Efficiency & Flexible Spaces Top Buyer Wish Lists

Buyers in 2026 are prioritising practicality over prestige.

Energy-efficient homes (EPC B or higher) command 5–10% premiums and attract green mortgage discounts. Flexible spaces for home working, gyms or multi-generational living are non-negotiable for many families. Renovations focusing on insulation, solar and smart tech are delivering the strongest returns.

Homeowner Upgrade: Small energy improvements can add thousands to value and cut running costs dramatically.

Your 2026 Property Action Plan

The market is stabilising. However, timing and preparation remain key.

Homeowners should extend leases now and budget for potential stamp duty on future moves. Buyers can secure lower-rate mortgages early and focus on energy-efficient properties. Landlords benefit from reviewing service charges and targeting high-demand commuter zones. Investors should track planning approvals and consider build-to-rent opportunities outside central London.

Thrive in 2026 with Property Wealth

Stamp duty stagnation, leasehold reform, falling rates and a planning surge are defining the UK property market in 2026. The London Property Bulletin, hosted by Farnaz Fazaipour, gives you the insights to navigate every shift. At Property Wealth, we turn policy changes into profitable strategies. Our network connects you with off-market deals, specialist lenders and reform-ready opportunities.

Ready to make 2026 your strongest property year yet? Connect with us today for personalised advice and exclusive updates.

https://www.londonproperty.co.uk/en/l…

Join the Conversation

Are you locked in by stamp duty? Extending your lease? Or hunting energy-efficient homes? Share your plans below. Follow us for the latest property trends and expert advice.

Subscribe to our Newsletter

London Property is dedicated to assisting our community in preserving and enhancing property wealth. Through weekly news bulletins and expert conversations, we provide the latest insights from leading agents with our “Word from the Street” series. Follow us to stay ahead and make informed decisions on your terms. We specialise in finding creative solutions to property challenges. Sign up to our newsletter to be kept informed as new content is released. SUBSCRIBE