Share On:
UK Property Market Review: August 2026
Unlike American Presidents, UK Prime Ministers generally aren’t recognized by a number, but if they were Andy Burnham would be the 59th Prime Minister of the United Kingdom since Sir Robert Walpole in 1721, coincidentally 59 is a ‘safe’ prime number which hopefully bodes well. For those not looking to mathematics to divine the future of the UK property market, read on to learn how Burnham’s tenure could produce that much needed injection of growth, particularly in the south, and discover some unexpected boons for landlords and investors as evidenced by some recent buy-to-let market data releases.
First up, what are Burnham’s intentions for the UK property market?
During Starmer’s deposing there was much mumbling around Stamp Duty and its mooted replacement with an annual land tax. Taking office, in the true British spirit of keeping calm and carrying on, Burnham said there would be no changes to stamp duty, scotching speculation over what might be in the Autumn Budget. Given that Burnham has presided over – and openly facilitated – the largest ever property boom in Manchester, that he would rock the boat so quickly in moving into Number 10, didn’t seem so on-brand for him. Once again, the sabre rattling of the British press was seriously unfounded.
Perhaps now is a good time to remind ourselves exactly what Burnham achieved in Manchester’s property market. During his tenure housebuilding delivery in Greater Manchester rose at its strongest pace in 20 years, using his devolved mayoral powers to deploy taxpayer-funded loans to finance a housing boom, particularly in high-rise apartment blocks in the city centre. This financing tool, effectively the Combined Authority underwriting development risk that private lenders wouldn’t (an attitude that is currently crippling housing delivery across London and the South) was the mechanical driver of his so-called ‘Manchesterism’, the model that as PM he may try to replicate nationally.
This approach worked so well in Manchester because the city, with its booming population and thriving jobs market was primed to absorb the increase in new supply. In short, he wasn’t trying to cultivate demand out of nothing, but sailing along with market forces. One might justifiably ask, are the prevailing winds in the rest of the UK as conducive as they were in Manchester to rally the market?
The answer is yes and no (come on, nothing’s straightforward any more). The shortage of housing across London and the South East is at an all time high. Construction starts are dismal. In 2025-2026 London built only 7% of the homes it needed. Earlier this year Berkeley said it would stop buying land (although this sounds less shocking when you realise exactly how big its current land bank is). So yes, London and the South East are crying out for quality new rental stock just as Manchester was. But Manchester had a specific advantage – large stocks of former industrial and brownfield land in and around the city centre, cheap and ready for high-density redevelopment. And cheap is certainly not a term that can be applied to land in London and the South East. But the mechanism – devolved authority using public-backed loans to de-risk development finance – is transferable in principle.
Owing to the higher developmental costs, it’s doubtful that it such a policy would produce the same level of price rises as we saw in Manchester, that said, more housebuilding, greater devolution and tax reform are exactly the kind of things that do support long-term growth, which is what investors look to the UK for. Solid, steady growth is desirable. And don’t forget, London property has doubled to nearly quadrupled in nominal terms over most 20-year periods since 2000. It’s early days for Burnham, but so far, so positive.
Speaking of positives, at the time of writing, news just in showed a slight rise in UK house prices in July, despite ongoing uncertainty with Iran which has affected lending rates hugely. The UK’s average house price tipped upwards from June to £277,542. We are firmly in a buyer’s market with sensible offers being readily accepted. We are encouraging our clients to window shop – do browse here.
New figures show hope for landlords
It’s some lesser reported figures on the churn in the UK housing market based on English Housing Survey data that are floating our boat this month because they look very good for UK landlords and wannabe investors. The data said that “Nearly 200,000 households previously in the private rented sector became owner occupiers in 2024-25. But there is also a return flow, with about 100,000 households moving into private rented properties having previously been owner-occupiers.”
A return flow?
One hundred thousand people moving from owner-occupied properties into private rented properties is quite a loud statistic. That’s a meaningful cohort of people exiting ownership, no doubt for a myriad of reasons (downsizing, divorce, relocation, rising mortgage costs etc) but it’s clearly an early indicator of ownership amongst people who already own (as opposed to those looking to get on the ladder) becoming less attractive vis a vis renting, meaning quality private rental stock is only going to become more precious and more in demand. Those who own the stock will be the ultimate beneficiaries both in the short and long term. This should be a leading signal of positive change for landlords and the persuasion those debating whether or not to get into the buy-to-let sector need.
And another thing to bear in mind, before Trump poked the hornet’s nest in March the market was showing signs of rebounding; buyers were coming back onto the market, interest rates were falling, house prices were pushing upwards and so on. Looking back, it might seem like a bit of a false summit, but it’s evidence that the fundamentals were there and that perhaps, a Burnham Bounce could kickstart a steeper, swifter recovery.
Gross buy-to-let yields hit 7.21% in Q1 2026
Another good news story you may have missed is the uptick in buy-to-let rental premiums which rose to 7.21% in the first quarter of 2026 up from 6.93% in the same quarter a year previously. This is interesting as it’s specific to the buy-to-let sector. The rise has been attributed to rising rents in the regions. Other points of note include the average interest rate across all new buy-to-let loans was 4.71%, 6 basis points lower than the previous quarter and 29 (!) basis points lower than the same quarter of 2025. Evidence that it is getting better for landlords.
A quick note on Renters’ Rights Reforms
Section 21 is now abolished meaning all evictions must now go through Section 8 with valid grounds. We can’t stress enough how important it now is to have a good, proactive lettings agency managing your properties now – due diligence on tenant quality and property condition matters more now than it ever used to. We recommend Brick Lettings & Management who operate nationally across the UK, have excellent reviews (from both landlords and tenants) and who, frankly, really care about their clients. Lots of our clients already let their properties with Brick. You won’t get passed from pillar to post, you’ll always be able to get hold of them and it will make all the difference to your peace of mind, as well as your balance sheet. And the stats really do say everything. Their due diligence is tremendous - only 1.6% of their landlords have experienced rental arrears - compared with the national average of 36% according to NRLA data. They really are on your side. Contact us for a referral or check out their Google reviews for yourself.
What to buy now?
We’ll end with the question we’re most asked and our answer would be Abu Dhabi properties are flying off the shelves – they can’t build them fast enough for us to sell! Contact us today if you’re looking to buy in Abu Dhabi, London, Manchester or Birmingham. It’s a buyer’s market remember!
Wishing all of our clients and readers a wonderful rest of summer and we look forward to bringing you new launches of both UK and UAE product in September.
Get expert guidance on buying international property
FEATURED PROPERTY
wimbledon bridge house
From £487,500
10% Downpayment
About the author
Founder & Managing Director
richard bradstock
RPA’s founder, Richard has worked in residential development investment for 20 years and oversees the general running of the business ensuring the RPA Group retains true to its founding principles. Over his career Richard has built an incredible network of international property investors and like-minded industry professionals.
READ OUR PREVIOUS BLOG POST
