NEW YEAR 2026 MARKET REPORT
As we reflect on 2025 and look ahead to 2026, the Cotswolds and West Oxfordshire property market continues to show its strength and lasting appeal. In this review, we share what we’ve seen locally, what’s shaping the year ahead and how we can help you with your next chapter.
Property made personal, helping you open the door to your next chapter.
2025 – Local Strength & A Balanced Market
Cotswolds and West Oxfordshire: Resilient in a Changing Market
Throughout 2025, the Cotswolds and West Oxfordshire continued to prove why they remain such sought-after places to live, work and invest. While price growth eased compared with previous years, local values stayed comfortably above national averages, reflecting the area’s enduring lifestyle appeal and strong buyer confidence.
Key highlights from 2025:
- Price movement: Values steadied as buyers became more considered and more homes came to market, particularly earlier in the year.
- Strong property values: Prices remain well above the UK average, underpinned by consistent demand for quality homes.
- Rising rents: The rental market remained robust, with continued rental growth supporting both landlords and tenants.
We saw steady demand for homes between £250,000 and £1,250,000 throughout the year, driven by families, upsizers and lifestyle movers. Even against a backdrop of wider economic uncertainty, well-positioned homes continued to attract healthy interest.
What the National Picture Told Us in 2025
Across the UK, the housing market slowed in 2025, with price growth easing to its lowest levels in almost two years and some months seeing little movement at all. Annual growth sat below long-term averages, reflecting a more cautious national mood.
That said, there were several positive signs:
- Improving affordability: Mortgage rates began to ease compared with recent years, helping buyers regain some confidence.
- Healthy activity levels: Transaction levels remained above pre-pandemic norms, with more people moving home than we’ve seen for several years — a strong indicator of market resilience.
- Selective demand: Buyers focused on well-presented homes that offered clear value and required minimal compromise.
Overall, while the national market cooled, motivated buyers remained active, especially where quality, presentation and pricing aligned.
2026 – Looking Ahead
Prices: Stability and a Return of Confidence
Industry forecasts point to modest national price growth in 2026, with values expected to rise gently as mortgage rates ease and affordability continues to improve.
For the Cotswolds and West Oxfordshire, we expect the market to stabilise and begin to strengthen as supply balances out and buyer confidence builds into the spring. Some pent-up demand following the Autumn Budget is also likely to come through, supported by the area’s ongoing appeal to families and commuters.
What’s driving the market in 2026:
- Improving borrowing conditions and affordability.
- Renewed momentum as greater fiscal clarity brings confidence back into decision-making.
- Continued demand for lifestyle-led, high-quality homes outside major urban centres.
Rental Market Outlook
The rental market across both areas remains strong. Demand from professionals, families and relocators continues to outstrip supply, meaning well-presented rental homes should benefit from high occupancy and steady rental growth.
What This Means for Buyers and Sellers
Sellers: Homes that stand out, through strong presentation, professional photography and realistic pricing — are likely to attract competitive interest early in the spring market and beyond.
Buyers: Improving affordability creates more choice and opportunity, particularly for buyers ready to move on well-prepared homes.
2026 – What to Expect
Prices: Steady Growth and Returning Confidence
Looking ahead to 2026, industry forecasts point to modest national price growth as mortgage rates continue to ease and affordability improves.
Closer to home in the Cotswolds and West Oxfordshire, we expect prices to stabilise and begin to strengthen as supply levels normalise and buyer confidence builds into the spring market. We also anticipate some pent-up demand coming through following the Autumn Budget, supported by the area’s continued appeal to families and commuters.
Key drivers for 2026:
- Improved borrowing conditions and affordability.
- Renewed momentum as greater clarity supports confident decision-making.
- Ongoing demand for lifestyle-led, high-quality homes beyond major cities.
Rental Market Outlook
The rental market remains strong across both areas. Continued demand from professionals, families and relocators means well-presented rental homes should continue to see healthy occupancy and steady rental growth.
Signals for Buyers and Sellers
Sellers: Homes that stand out, through strong presentation, great photography and sensible pricing, are likely to attract early interest as the spring market gains momentum.
Buyers: Improving affordability creates more choice and opportunity, particularly for buyers ready to move on homes that have been well prepared for sale.
What This Means for You
Whether you’re planning to sell, buy, invest or let, the start of 2026 brings renewed opportunity as the market settles and confidence returns.
Sellers - Now is the time to position your home at its best. With buyer activity expected to build through the early months of 2026, well-priced and well-presented homes are attracting strong early interest and achieving better results.
Landlords - The rental market continues to play a vital role across the Cotswolds and West Oxfordshire. Ongoing demand and limited supply are supporting rental growth, making it a positive outlook for landlords and long-term portfolio performance.
Thinking of moving in 2026?
If a move is on your mind, now’s a great time to understand what your home could really achieve in today’s market.
✔️ Book a free, no-obligation valuation with a Perry Bishop property expert
✔️ Get clear, local insight tailored to your home and your plans
✔️ Feel confident about your next chapter
👉 Get in touch today to book your valuation — and let’s make 2026 the year your move really happens.
Phillip Bishop
Managing Director