Torquay market update – January 2026
As we move into 2026, the residential property market finds itself at a pivotal moment shaped by shifting economic conditions and one of the most significant waves of housing legislation in decades.
The market has continued to show resilience through inflationary pressures, elevated borrowing costs, and constrained supply, the year ahead promises little change from what we can currently see for homeowners, buyers, sellers, landlords and renters.
2026 will see the Labour Government having been in office for two years, and whilst there has been additional spending in the public sector, health care and infrastructure; areas of concern continue to include rising taxation, weak economic growth, unemployment and investment levels in the private sector.
This position has made the Bank of England take measures to stimulate activity by reducing interest rates. This is likely to continue during 2026 with further interest rate cuts forecast. This is good news for borrowers and, despite other economic concerns, is creating increased activity amongst those looking to move home.
The latest forecasts from the property portals and from lenders, indicate that the property market will remain resilient and that property values will likely remain steady and flatline for the whole of 2026.
Whilst the Government’s new home building plans are well behind schedule, we nevertheless expect to see further plans and reforms of the planning system brought forward to try and stimulate house building. This shortfall of required accommodation verses demand continues to fuel the need for all property in general.
The Renters Rights Act will largely be implemented from May and we are seeing a number of landlords choosing to exit the sector and sell. Alongside this, broader property law changes introduced in 2025 continue to reshape the landscape. These include reforms to leasehold structures, enhanced building safety requirements, and new transparency measures around land ownership and control - part of what has been described as the most significant transformation of property legislation in decades. For landlords, developers, and conveyancers, 2026 will be a year of adapting to these expanded compliance demands.
The UK residential property market therefore currently stands at the cross roads of economic caution and legislative ambition. The year ahead will test the sector’s adaptability, whilst offering the potential for a more transparent, secure, and sustainable housing system—if reforms deliver as intended.
Overall, the much sought after amenities afforded within the Torquay area continue to support good activity, resulting in proceedable sales subject to sellers understanding of realistic pricing.
As always, obtaining good, professional advice is key and this is where the extensive experience and knowledge that our team possesses comes to the fore. We have successfully enabled people to buy and sell in all market conditions, now spanning several decades.
We are but a phone call away, ready to assist with your plans and look forward to working with you during the year ahead.
With kind regards
John
Call, email or write to us at our office in Wellswood.
We will be delighted to answer any question or provide information on our beautiful town and surrounding area.
John Couch The Estate Agent43 Ilsham Road
Wellswood
Torquay
Devon
TQ1 2JG
Telephone: 01803 296500
Email: [email protected]
Normal Opening Times
Monday - Friday: 9:00AM - 5:30PM
Saturday: 9:00AM - 12.30PM
Viewing out of hours also by appointment.
(We are closed Sundays)
