In this inaugural 2026 episode, Mark Homer provides a candid look at the fractured state of the UK property market. After a volatile end to 2025, Mark explores the stark contrast between the plummeting values in luxury London boroughs like Chelsea and Kensington, some down as much as 40%, and the resilient growth in the North and Midlands. 

KEY TAKEAWAYS

A Tale of Two Markets: Central London (Chelsea, Mayfair, Kensington) has seen a decade-long "slow-motion crash," with prices returning to 2013/2014 levels. Meanwhile, the Midlands and North remain strong, often with market values sitting below the cost of rebuilding.

The Rental Squeeze: The Renters' Rights Act of 2026 is expected to professionalize the sector but also drive up rents by 5% to 10% as landlords pass on the increased costs of compliance and taxation.

Interest Rate Relief: After interest rates spiked 1000% through the COVID era (0.5% to over 5%), they are finally retreating. Mark predicts a base rate of approximately 3% by the end of 2026.

The "Five-Year Rule" for Buyers: If you plan to stay in a property for less than five years, renting is likely more cost-effective due to high stamp duty, legal fees, and moving costs. For stays of seven years or more, buying remains the superior financial move.

Capital Gains Advantage: One of the most significant remaining tax reliefs for UK residents is the capital gains exemption on a primary residence. Mark emphasizes utilizing this to build wealth through home improvements and natural market appreciation.

BEST MOMENTS

“London has been a bit of a slow-motion crash... I've seen flats and houses that have dropped 30% and 40% in the last 10 years. It is nuts."

"In many places in the Midlands and the North, it will cost you more to rebuild a property than its market value. You can't replace it for what you're actually buying it for."

"Landlords will have to be paid for this increased cost of doing business... and that will be in the form of extra rent."

"Inflation actually destroys and reduces your mortgage. If inflation is 3% and your mortgage is 5%, the real cost is only 2%."

"Don't panic. I think it’s a good time to buy and to hold. I've seen this cycle over and over again for 25 years."

VALUABLE RESOURCES 

https://www.youtube.com/user/progressiveproperty https://www.progressiveproperty.co.uk/the-progressive-co-founders/

ABOUT THE HOST

Mark has bought, sold or has managed around 1,000 property units for himself, Rob, his family and his investors since 2003. He is a system and spreadsheet geek and has developed a complex, confidential deal analyser system of buying residential, commercial and multi-let properties.

CONTACT METHOD

Email: [email protected]

LinkedIn: https://www.linkedin.com/in/markhomer1

Facebook: https://www.facebook.com/markprogressive

Twitter: https://twitter.com/markprogressive