A Market That Rewards Realism

If you've been following the news recently, you'll have noticed there's no shortage of uncertainty.

We've seen significant political developments following the Prime Minister's resignation, while ongoing conflict in the Middle East continues to affect global markets, inflation expectations and interest rate forecasts.

Naturally, many homeowners are asking what this means for the property market.

From what we're seeing locally across County Durham, the market hasn't stopped moving, but buyers are certainly becoming more considered in their decision-making.

This isn't unusual. Major life events such as moving home, upsizing, downsizing or relocating for work don't simply disappear because of political or economic uncertainty. However, uncertainty can make buyers more cautious. They may take longer to make decisions, view more properties before making an offer and become increasingly selective about the homes they pursue.

Recent commentary from Lucian Cook, Head of Residential Research at Savills, highlights that housing markets are often influenced more by economic conditions and consumer confidence than by political events themselves. While changes in government can create short-term hesitation, housing decisions remain primarily driven by people's personal circumstances and needs.

Alongside domestic political uncertainty, wider global events are also shaping market sentiment. The Guild of Property Professionals' Summer 2026 Housing Market Update notes that the ongoing conflict in the Middle East has contributed to a more uncertain economic outlook. Rising energy costs have increased inflationary pressures and reduced expectations of further interest rate cuts, leading many buyers to adopt a more measured approach when considering their next move.

Despite these headwinds, the housing market continues to show resilience. The Guild reports that buyer demand remains relatively stable, with committed buyers and sellers continuing to transact even against a backdrop of elevated borrowing costs and geopolitical uncertainty. Their report describes the current market as "measured but moving", a phrase that accurately reflects what many of us are experiencing on the ground.

Locally, we've certainly noticed the market becoming quieter than earlier in the year. That doesn't mean buyers have disappeared. Far from it. Serious buyers remain active, and homes that are priced correctly and presented well continue to attract interest.

What has changed is the level of competition between buyers. With more properties available and greater uncertainty in the background, buyers have more choice and less urgency. As a result, realistic pricing has never been more important.

For sellers, the message is simple. The market remains active, but it's a market that rewards realism rather than optimism. Those who position their property at a sensible, evidence-based price are still achieving successful sales. Those who test the market with ambitious pricing often find buyers simply move on to the next option.

As we move through the second half of the year, confidence will likely be influenced by developments both at home and abroad. Political change, interest rate expectations and global events will all continue to shape sentiment. Until there is greater clarity, buyers are likely to remain cautious.

That doesn't mean the market is standing still. It simply means that success increasingly belongs to those who understand the market they are operating in and position themselves accordingly.

Aidan Donnelly, FNAEA

Sources

Cook, L. (2026). Prime Minister Questions: What Does Political Change Mean for the Housing Market? Savills Research.

The Guild of Property Professionals & PriceHubble (2026). Housing Market Update – Summer 2026. Analysis based on data from the Office for National Statistics (ONS), HMRC, Bank of England, Rightmove, Zoopla and other industry sources.

Office for National Statistics (ONS) Housing Market Data.