2026 South East Property Market Predictions
As we move into 2026, the South East property market continues to stabilise after several years of volatility. At M&M Estate & Letting Agents, we have analysed the latest economic forecasts, mortgage trends, government legislation and on-the-ground activity across Gravesend, Medway and the wider South East.
The verdict?
2026 will be a year of steady growth, increased confidence, and major changes for landlords.
Here’s our full outlook.
🔑 Key Market Themes for 2026
Sales Market
- House prices in the South East are expected to rise around 2–3% over 2026.
- Mortgage rates should gradually fall towards the mid-3% range by late 2026.
- The sub-£500,000 market — a major segment in Gravesend and surrounding towns — remains the most resilient.
- Higher-value homes (£2m+) will continue to feel pressure from new taxation and buyer caution.
- More sellers are expected to return to the market as confidence and affordability improve.
Lettings Market
- Rental growth continues but cools to a healthier 2–3% average.
- Tenant demand has eased slightly as supply grows, meaning fewer frantic bidding wars.
- Time-to-let is lengthening across the region — expect 3–4 weeks for a quality tenant at the right price.
- The Renters’ Rights Act (from May 2026) will transform landlord obligations and tenant protections.
1. Economic Outlook — What’s Driving the Market?
Interest Rates & Inflation
The Bank of England has already begun carefully reducing interest rates, with forecasts suggesting Bank Rate will move closer to 3.5% by the end of 2026 if inflation remains controlled.
This will gradually improve affordability for buyers, particularly first-timers and those upsizing.
Mortgage Market
Lenders are already competing again, especially for borrowers with strong credit profiles.
We expect:
- More attractive fixed-rate options
- Reduced stress testing
- A healthier balance between supply and demand
This will fuel increased movement throughout 2026.
2. Sales Market Predictions – South East England
The South East entered 2026 with prices broadly flat compared to 2025, but with confidence steadily rebuilding.
📈 Price Growth: Slow and Steady
Most major forecasters point to 2–3% growth for the South East in 2026.
This isn’t a boom — but it’s strong enough to improve seller sentiment while keeping homes within reach for buyers.
Best performing segments:
- Homes under £500,000
- Family homes near good schools
- Commuter areas with strong transport links (including Gravesend via HS1)
More sensitive segments:
- Properties at £2m+
- Homes with low energy efficiency or substantial modernisation requirements
- Rural high-end stock where buyer activity is more selective
🏠 Transaction Levels: Expect More Movement
After years of “pent-up demand”, we predict:
- More people upsizing
- Downsizers finally making the move
- First-time buyers re-entering the market
- Fewer fall-throughs as mortgage markets stabilise
For sellers in Gravesend, Medway and Dartford, this means more committed buyers and a more fluid pipeline.
🌍 Micro-Market Highlights
Certain local areas will outperform:
Gravesend & North Kent
- HS1 access
- Regeneration projects
- Better affordability compared to London
- Consistent first-time buyer demand
Medway – particularly Rainham, Rochester and Chatham
Dartford & Swanscombe – driven by new developments and transport links
3. Lettings Market Predictions – 2026
The rental market remains strong but is transitioning to a more balanced state.
📉 Demand Easing, Supply Improving
Across the South East:
- Tenant demand has softened by roughly 20%
- Supply has improved by around 15%
- Average rent increases have slowed to roughly 2–3%
This is far healthier than the rapid rises of the last few years.
⏳ Time-To-Let: Growing Slightly
We expect:
- 2–3 weeks for competitively priced properties
- 3–4 weeks for higher-end or poorly presented homes
Good marketing, presentation and agent follow-up are now more important than ever — which is where M&M continues to excel.
⚖️ The Renters’ Rights Act – The Biggest Shift in a Generation
From 1 May 2026, landlords will see major reforms including:
End of Section 21
No-fault evictions will be replaced by a more structured list of possession grounds.
Assured Periodic Tenancies Replace ASTs
All new tenancies will run continuously, not on fixed terms.
Limits on Rent In Advance
Typically one month’s rent maximum.
Rent Increases
- Only once per year
- Minimum two months’ notice
- Tenants can challenge increases more easily
New National Landlord Database & Ombudsman
Professional standards will rise, and enforcement will be more consistent.
For hands-off or time-poor landlords, full property management will become more valuable than ever.
4. What This Means for You
For Sellers
- 2026 is a great year to list: confidence is returning, and mortgage costs are improving.
- High-quality presentation and realistic pricing are essential.
- More serious buyers and fewer fall-throughs expected.
For Buyers
- Greater choice and less intense competition versus 2021–2023.
- Mortgage rates steadily improving.
- A good year for first-time buyers and long-term movers.
For Landlords
- Prepare early for the May 2026 legislation changes.
- Ensure your tenancy agreements, compliance and rent review processes are future-proof.
- Expect modest rental growth but longer void periods if pricing is unrealistic.
- Consider reviewing yields, tax planning, and whether to expand or consolidate your portfolio.
For Tenants
- Increased legal protections and stability.
- Softer rent increases.
- More choice as supply continues to improve.
5. The M&M Summary
2026 is shaping up to be a balanced, confident and opportunity-rich year for the South East property market.
For homeowners, landlords and tenants in Gravesend, Medway, Dartford and surrounding areas, the message is clear:
This is the year to make long-term, strategic decisions.
The extremes of previous years are behind us — stability is returning.
M&M Estate & Letting Agents is here to guide you through every step.
