Sarah Barnes, head of residential conveyancing at law firm Napthens, looks at the housing market in 2026 and examines the impact of changes to sellers’ obligations and the upcoming mansion tax.
As we start move through January and into 2026, the theme of cautious confidence appears to be taking over. However, it’s still early days and we can’t define a year by what happens in the first few weeks, but we’ll definitely see changes to how both buyers and sellers approach transactions, with upcoming government changes coming into place.
The market is more measured than in recent years, but it’s also more informed. Buyers and sellers are taking advice earlier, asking better questions, and thinking more carefully about risk, timing and affordability
Sellers will have more onus on them at the start of the process, as the government has introduced changes aimed at reducing the number of failed transactions.
And of course we have the newly proposed ‘mansion tax’, or High Value Council Tax Surcharge, which won’t come into force until 2028, but might start to impact decisions people make in the next 12-18 months.
Buyers
Preparation will be key in 2026. Buyers will need to have clarity on funding to ensure the transaction isn’t delayed by money or loans not being available.
There is also the setting of realistic timescales as this can often lead to people pulling out of a purchase if they think something is taking too long.
To ensure timescales and funding are both realistic, taking early legal advice will matter far more than trying to move quickly.
It will inevitably mean that the strongest buyers will be those who understand the process and anticipate issues before they arise.
Sellers
Pricing, presentation and pragmatism will be crucial. Buyers are more discerning and less willing to overlook issues.
To overcome these issues occurring during the sales process, leading to a failed transaction, the government wants sellers to provide some key information up front – including information about the condition of the home, leasehold costs and details of those involved in chains.
There is also the use of digital tools (e.g. property logbooks and digital ID verification) to help share information up front and easily to potential buyers.
Transparency and collaboration across the transaction will be essential to maintaining momentum and reduce the risks associated with a transaction failing.
Mansion tax
The tax may act as an incentive for homeowners to downsize and potentially free up the market, but it’s likely to be limited as we’re talking about the top end of the market where the fewest properties are sold
It would have been more beneficial for the threshold at which stamp duty is charged, to be increased to £250,000 to provide further incentives to those on the first rung of the housing ladder.
Rather than focussing on a mansion tax, this would have created momentum, which will now be further stifled due to the freeze to tax thresholds and cost of living generally.
Of course, the wider implications could potentially result in homeowners waiting it out, just in case the policy is deferred or scrapped, and that means anyone downsizing and freeing up finances could have a small impact on how the lower end of the market moves.
Property professionals
This will be a year where quality, communication and judgment really count.
Chains are more fragile, expectations are higher, and calm, clear advice has never been more valuable.
It means collaboration between professionals isn’t optional — it’s fundamental to every single transaction.
Overall
On a personal level, after many years in residential property, I’m reminded that while the market changes, the fundamentals do not.
Clear advice, professional collaboration and understanding client goals remain what truly make the difference.
The housing market will inevitably shift as we move through 2026, but it’s up to everyone involved to play a positive role in every sale or purchase, as every failed transaction is something all those involved will want to avoid.
About the author
Sarah Barnes is head of Napthens’ residential conveyancing team and has over 20 years of experience in residential property work. Sarah supervises and supports her colleagues on a broad range of residential property matters including sales, purchases, remortgages, staircasing and shared ownership. As the head of the conveyancing department, Sarah regularly reviews market expectations, economic changes and legal updates that impact the housing market across the UK.
