2026 is already set to be a busy one. The year has started positively across the board. Properties seem to be moving fairly swiftly. Lenders have been cutting rates. Economists are predicting inflation to continue falling, which then has prompted anticipation of further base rate cuts throughout the year.
All of this speculation is supported by SONIA swap rates, too. As of the 13th January 2026, 5 year swaps sit at 3.580%. Compared to 4.253% a year prior, it’s quite the difference.
Lender appetite is strong
Lender appetite appears strong, too. We’ve seen lenders tweaking their rates and criteria in order to start the year off strong, including a well-known specialist lender rebranding entirely with criteria leaning more towards catering for complex buy to let, and even a smaller building society lender introducing criteria such as expat self build, self employed expat buy to let and holiday let, and allowing gifted deposit for expats.
Market activity is picking up
This positivity is sparking activity in the marketplace. Houses that have sat there for some time seem to miraculously becoming marked as sold stc. Properties that perhaps were previously out of reach are now a little more achievable after rate reductions due to lender stress-testing calculations. Rents also remain high which continue to spark interest for investors.
Strong investor demand across multiple property types
As a firm, at Fowler Smith Mortgages & Protection we’re continuing to see strong interest from investors looking to buy a multitude of property types. Standard buy to let, holiday let, some investors based around London also seem keen on buying a number of investments properties further to the North of the country in bulk. We’re still seeing appetite for PBSA, too. Investors view such investments as having continuous demand and are hopeful to achieve a good return.
Positive conversations with developers
Our conversations with developers remain positive, too. With developers continuously looking for land or sites that can be developed upon and regenerated. Ultimately, this will continue to create stock for investors to buy, homemovers to move in to, and help the government achieve their new homes targets as well.
New build incentives are still available
We’re still seeing incentives for new builds on the residential front. Lenders often offering lower rates for new homes due to their ‘green’ energy rating, which allows borrowers to save on interest rates or receive an element of cashback upon completion.
Outlook for the year ahead
From my perspective, the outlook for the year is positive. Investor appetite remains and lenders continue to cater for it. Homemovers seem as though they feel comfortable again to stretch their affordability and buy the forever home, and rates continuing to lower offers a boost in all aspects, personally and for the economy, for those interested in investing or home ownership. I’m expecting a busy year.
