Faisal Choudhry

The property firm says the sector is entering 2026 from a position of relative strength, characterised by robust sales activity and steady price growth.

While Prime Central London is expected to experience a further modest dip in value before a slow recovery, the markets furthest from the capital are primed for a quicker rebound. Savills identifies the relatively affordable prime markets of the Midlands, the North of England, and Wales as strong performers, yet predicts that Scotland will lead the pack overall. This resilience is attributed to broad-based buyer demand which is expected to translate into renewed transactional activity as mortgage rates begin to ease.

Faisal Choudhry, director of research at Savills, said: “Following January’s Budget in Scotland and the announcement of two new council tax bands for homes priced above £1 million, we anticipate a short-term uplift in activity in the prime housing market north of the border.

“The two-year lead-in before the changes take effect provides buyers with valuable breathing space, while the decision to keep Land and Buildings Transaction Tax rates unchanged in the coming tax year will come as a further relief, helping to support confidence and transactional momentum in the prime sector.”