MHHG estate agents

As we head toward the start of 2026, the property market across the UK is experiencing a clear shift. While the South of England slows under tax concerns and rising seller numbers, Manchester and the wider North West continue to show stable growth and strong buyer activity.

With local insight from our team and recent market data, here’s your full breakdown of how the property sales market is performing nationally, in Manchester, and specifically in M18.

Key Takeaways for Homeowners & Buyers

• Buyer demand is down12% year-on-year UK-wide, with sales agreed dropping by 4%during the lead-up to the Autumn Budget.
• 210,000 sellers of homes priced above£500,000 received relief after the proposed annual tax on higher-value homes was scrapped—expected to lift activity early in 2026.
• Stamp duty thresholds have not risen with house prices, meaning more buyers are paying higher stamp duty (“fiscal drag”), especially across southern England.
• Northern regions remain more resilient, with prices still rising year-on-year despite southern declines.

National Market Overview

The past few months have been clouded by rumours of new taxes on homes over £500,000. This uncertainty pushed many buyers to delay decisions, resulting in:

• 12%drop in buyer demand
• Fewer agreed sales compared to last year

Despite this, the overall UK market is still up1.3% year-on-year, with the average UK home now valued around £270,200.
Outside the South, most regions—including the North West—are seeing above-average price growth, highlighting a clear divide in market performance.

Manchester & North West Market Update

The North West continues to outperform the South, with annual property price growth of approximately 2.9%—well above national averages.

Manchester remains one of the strongest urban markets in the region due to:

• Continued demand from first-time buyers
• Strong rental demand driven by universities and employment hubs
• Lower average purchase prices compared to Southern England
• A balanced supply of homes coming onto the market

Even with UK-wide uncertainty, Manchester’s market shows no significant slowdown, and we expect buyer activity to strengthen moving into early 2026.

Spotlight on M18 — Market Snapshot
The M18 area (including Gorton and surrounding neighbourhoods) continues to offer excellent value for both first-time buyers and investors.

M18 Key Metrics:

• Average House Price: £224,500
• Average First-Time Buyer Price: £210,000
• Average Years Between Moves: 8 years
• Average Time on Market:30 days

Homes here are selling faster than in many nearby postcodes, reflecting strong affordability and consistently high demand.

Realistic Selling Range

Although the average valuation sits above £220,000, recent transactions show many properties completing in the £175,000–£200,000 range depending on type, size and condition.

This makes M18 one of the most accessible buying areas in Manchester, while still offering solid growth potential for sellers.

Budget Impact — What Manchester Sellers Should Know

1. Proposed property tax on £500,000+ homes has been withdrawn

This instantly removes a major source of uncertainty.

• 210,000 homes for sale nationally fall into this price band.
• Many delayed buyers are expected to re-enter the market in early 2026.
• Southern markets will feel the biggest lift — but northern confidence will also benefit.

2. Stamp duty “fiscal drag” continues

Because stamp duty thresholds haven’t changed since 2014 while house prices rose by47%, more mainstream buyers now fall into higher stamp duty bands.
The proportion of homes where stamp duty costs exceed 2.5% of purchase price has risen from:
21% in 2019 → 33% today
This adds pressure especially in the South, but Manchester prices remain low enough that many buyers are still below the higher thresholds.

Market Outlook for Early 2026

Although the Budget caused turbulence, the underlying desire to move remains strong.

• The tension of the past few months will ease now that tax uncertainty has ended.
• Many homeowners who “paused” their moving plans are expected to return to the market at the start of the new year.
• High-value southern markets may remain static for a short time, but activity is forecast to bounce back through 2026.

For Manchester, which already shows stronger demand and affordability, the outlook is more positive than the national average.

What This Means for You — MHHG’s Guidance

For Sellers

• Expect stronger activity from January 2026 as confidence returns.
• Price competitively, especially in areas like M18 where buyers are value-sensitive.
• High-quality marketing, fast communication and realistic valuations are key to achieving a sale within Manchester’s average 30-day window.

For Buyers

• Manchester still offers excellent affordability compared to national figures.
• With many southern buyers delaying moves, competition in northern cities has remained steady rather than surging.
• M18 in particular offers opportunities to buy below the headline average, including for first-time buyers.

For Investors

• Manchester continues to outperform the South in rental demand and annual growth.
• M18 offers strong yield potential thanks to lower entry prices and fast rental turnover.

Thinking of Selling?

MHHG Estate Agents provides accurate, realistic valuations based on Manchester’s true market performance—not speculative or inflated figures.
Our team combines local expertise, professional marketing, and tailored advice to help you achieve the best possible sale price.