If you own or run a business, then this summary briefing is for you. Running a business or managing family wealth means making decisions before the picture is perfectly clear. At our recent briefing with the Bank of England’s West Midlands Agent, Graeme Chaplin, we heard a consistent message: the UK outlook has stabilised compared with last year, but costs and rates can still move, so sensible buffers and sound planning remain key.
This summary pulls together the points our clients are frequently asking us about: market conditions and the upcoming 2026 rule changes with the additional benefit of things to consider when renewing a lease, refinancing, buying or selling property, or budgeting for the year ahead.
Overall, the property market has entered 2026 on a steadier footing than late 2025. Headline data show modest price growth and improved mortgage conditions versus a year ago, while commercial markets are seeing more assets come to market, helping affordability.
At the same time, the outlook remains practical rather than buoyant: central banks are cautious, costs can still move around, and several rule changes come into effect this spring and later in the year.
The market: steadier, but still cautious
- Prices and activity: UK house price data show incremental gains rather than surges, with the national average now a little over £300,000 and annual growth limited to low single digits. This is consistent with a market that is stabilising rather than on a significant growth trajectory.
- Rates and policy: Researchers still expect the Bank of England to move carefully in 2026: the direction of travel is towards easing, but timing depends on how inflation evolves. Analysts flag that energy and shipping costs, as a result of geopolitical issues, will cause further uncertainty.
Conditions are better than a year ago, but we are not out of the woods.
Known 2026 policy milestones to plan around
- Business rates changes (from April 2026): A new rating list comes into force and councils start using updated rateable values. Multipliers are being reset, with permanently lower multipliers for eligible retail, hospitality and leisure properties below £500,000 rateable value, a higher large property multiplier for rateable values exceeding £500,000 and refreshed Transitional Relief to soften rates increases. You can already check your future rateable values online and budget accordingly.
- Private rented sector (from 1 May 2026): The Renters’ Rights Act 2025 ushers in assured periodic tenancies (replacing assured shorthold tenancies) and abolishes Section 21. Landlords and build-to-rent operators should review their portfolios now; repossession options and some rent increase mechanics are changing.
- Upwards only rent reviews (commercial): A ban on these is progressing in Parliament as part of the English Devolution and Community Empowerment Bill. The wording may still change, but the direction is towards rent moving up or down. If you are negotiating leases in 2026, keep drafting suitably flexible so deals aren’t wrong footed by the final form of the Bill.
- Building Safety Levy (developers): A new levy is planned to take effect from October 2026. This needs to be factored into costings and funders should have clear visibility of building safety compliance costs.
What to consider now: owner-managed businesses
- Borrowing and cash flow:
- Shop around early for finance or refinance
- Give lenders clean, consistent numbers and build in a small buffer for your business rates.
- New leases and lease renewals:
- Work out your total operational costs: annual rent, business rates, service charge and buildings insurance. Make sure it all stacks up
- Keep rent review clauses simple and future proof so that, if upward and downward reviews become standard, you see the benefit
- Ask for clear service charge budgets from your landlords in advance.
- Business rates (April 2026 changes):
- Check your new rateable value and build it into your 2026/27 budget
- If the revised rates figure looks off, query it quickly with the Valuation Office Some assessments are time sensitive.
- Disposals:
- Be organised. Tidy up your title, seek any consents from third parties early; have replies to Commercial Property Standard Enquiries and ancillary documents ready.
What to consider: high net worth and private individuals
- Mortgages: If a purchase or remortgage works now, consider securing the rate rather than waiting for the market to shift.
- Lettings and residential investment portfolios: Update tenancy packs for the new assured periodic tenancy regime and removal of Section 21. Familiarise yourselves with the changes.
- Property holding structures: Revisit ownership and funding structures (personal, company, trust, pension) with your legal team and tax advisors in light of business rates, tenancy and building safety changes. There is often room for improvement.
- Purchases and sales: On purchases, prioritise your diligence and familiarise yourselves with the impact of building-safety changes, where relevant. On sales, get ahead by preparing your sales and legal packs and your replies to enquiries, as this can justify stronger pricing and shorter turnaround times for completion.
How can we help?
We have a broad and established track record in advising on and dealing with commercial real estate and land.
Our experience and understanding of the myriad of factors which can affect a transaction, together with our meticulous attention to detail, ensure that your affairs will progress smoothly and without delay.
Our priority is always to serve our clients’ best interests. To achieve this, we tailor our services to offer you a bespoke service, according to your individual needs. This can involve harnessing the skills and knowledge across our practice areas.
Allied to our straight-talking, down-to-earth approach, these qualities enable us to build long-term relationships with clients, many of whom have used our services for several decades. It’s a philosophy which benefits our clients and has won the firm several coveted industry awards and accolades.
This information is for guidance purposes only and does not constitute legal advice. We recommend you seek legal advice before acting on any information given.
