The UK property market continues to evolve, with commercial investment showing signs of resilience, residential sales gradually stabilising, and rental income increasing for landlords. However, higher mortgage rates and ongoing economic uncertainty mean buyers, sellers and investors are still having to consider their options carefully.
For those following the property market in Huntingdonshire, these national trends offer useful context. From changing buyer confidence to opportunities for landlords, understanding the wider picture can help explain some of the factors influencing property decisions.
Commercial property investment remains resilient
The UK commercial property market has continued to attract investment despite a challenging economic backdrop.
According to Colliers, £24.3 billion of commercial property investment had been completed by the end of August 2026, slightly ahead of the equivalent period in 2025. London accounted for £9.2 billion of activity, while international investors represented 46% of transaction volumes.
These figures highlight how commercial property performance can differ significantly depending on the sector, location and quality of the building.
Residential property market shows further signs of stabilisation
The residential market is also showing signs of improvement, although activity remains sensitive to affordability and borrowing costs.
The latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey indicated that buyer demand and agreed sales remained in negative territory in August, but both measures improved.
The net balance for new buyer enquiries rose to -19%, its least negative reading since January. The balance for agreed sales improved to -17%, compared with -38% in April.
Expectations also became more positive. The net balance for sales over the following three months moved from -13% in July to -3% in August, while the 12-month outlook increased from +3% to +6%.
These figures suggest that market conditions may be gradually improving, even though some buyers and sellers remain cautious.
For homeowners considering a move, the distinction between a stabilising market and a rapidly growing one is important. Improving sentiment does not guarantee that every property will sell quickly or achieve its asking price. Pricing, presentation, location and the level of competition from other properties remain significant factors.
Mortgage rates continue to influence property sales
Mortgage affordability remains a key consideration for the residential market.
According to Savills, mortgage approvals in July were 16% below the 2017–2019 average and at their lowest level since December 2023. Sales agreed in August were also 6% below the pre-pandemic norm.
Completed transactions were slightly more resilient, standing 2% above the 2017–2019 average in July. However, this may partly reflect stronger activity earlier in the year, with weaker mortgage approvals and agreed sales potentially affecting future transaction levels.
There are nevertheless signs of underlying interest from buyers. Zoopla reported that buyer searches increased by 7% in August, suggesting that people are still exploring their options despite the challenges posed by borrowing costs.
If mortgage rates fall, some of this interest could translate into additional demand from buyers who have delayed their plans while waiting for more favourable conditions.
For prospective buyers, understanding the relationship between deposit size, mortgage repayments and household expenditure remains essential. Sellers, meanwhile, may benefit from understanding what buyers can realistically afford when deciding how to price their property.
What does this mean for the local property market?
The latest reports point towards a property market with areas of resilience, but also some continuing challenges.
Commercial investors are still finding opportunities, particularly in industrial and logistics property. Residential market sentiment is gradually improving, although mortgage affordability remains a constraint.
Looking ahead
As 2026 progresses towards the end of the year, the property market will continue to respond to interest rates, economic confidence, financing conditions and changing demand across different sectors.
There are reasons for cautious optimism, particularly given the gradual improvement in residential market expectations and continued investment in parts of the commercial sector. However, affordability and economic uncertainty remain important considerations.
For anyone thinking about buying, selling or investing in property, keeping up with national trends while understanding local conditions can provide a clearer picture of the opportunities and challenges ahead.
Information sourced from: Quilter October 2026 Property Review
