Market Comment (July 2026) - Are You Coming Home To A New House?
Well, football isn't coming home. But if you're thinking about moving home, there's rather more to play for. As we head into August, Trading Places is on hand to make sure you're fully informed about everything that could shape your decision to stay or go.
A new property tax on the horizon — and what it could mean for Waltham Forest
London has a new resident on Downing Street, and Andy Burnham is already making his presence felt. Burnham has signalled that wealthier households could face tax rises as he looks to ease pressure on the less well off, saying he may want to "ask for a little" more in tax at some point — and stopping short of ruling out a wealth tax.
Of particular interest to homeowners is Mr Burnham's previous backing for a proportional property tax (PPT), proposed by the Fairer Share campaign to replace both council tax and stamp duty. Analysis by the campaign suggests a majority of households in more than 20 London boroughs would pay more under the reform. Westminster would be hardest hit, with just 12% of households gaining. Here in Waltham Forest, the campaign estimates 45% of households would benefit — meaning most would either pay more or see little change.
Under the proposal, the owner of a £700,000 property would pay £3,360 in PPT, roughly in line with council tax at that value. Owners of more expensive homes would pay more, while those in lower-value properties would see bills fall — though outcomes depend heavily on existing council tax levels, which vary significantly across London. Renters would not pay the PPT directly, but landlords are likely to pass on at least part of any bill through rent.
The campaign's chairman, Andrew Dixon, told The Standard: "This isn't just sort of the regions versus London. This is London versus London itself, actually, because you will find many nurses, teachers, those working in the public sector often end up paying more council tax than those living in £20 million mansions in Westminster."
The campaign estimates around £5 billion would be raised from a 0.96% levy on second homes, properties owned by foreign nationals and empty housing — with the bulk coming from London. For context, the average London house price stood at £533,000 as of April, according to the Office for National Statistics, with flats and maisonettes averaging £431,000.
Buyers are taking their time — but the middle market is holding firm
New figures from Connells Group, the UK's largest integrated property services provider, show that 52% of homes listed in January 2026 received an offer within six months, down from 58% a year earlier. Offers within the first month also slipped, from 42% to 38%.
The encouraging news for many Leytonstone sellers is where demand remains strongest: two and three-bedroom homes, with 55% and 53% respectively securing offers. These are the properties favoured by first-time buyers and growing families — households moving out of necessity rather than choice. By contrast, five-bedroom homes saw offers fall from 59% to 41%, as elevated mortgage costs weigh most heavily on buyers needing larger loans.
"The housing market is still moving, but buyers have become more selective about where they spend their money," said Aneisha Beveridge, Research Director at Connells Group, adding that higher-value homes face a tougher environment because mortgage costs remain significantly above the levels of a few years ago.
Leasehold homes — a substantial part of the East London market — saw a sharper decline than average, with offers falling from 57% to 48%, possibly reflecting greater buyer caution around leasehold terms and ground rents.
Pricing it right has never mattered more
Data analysed by The Property Franchise Group makes for sobering reading: only around half of homes leaving agents' books are actually completing. In June 2026, 66,200 exchanges were recorded against 64,000 withdrawals — a 50.9% success rate that makes listing a home, in the words of the group's commentary, "a flip of a coin".
The culprit? Overvaluation, according to a statement released by the group: "The biggest problem is not a lack of buyers, it is the continued overvaluing of homes by agents who are more frightened of losing the instruction than they are of telling the vendor the truth."
The numbers back this up. Some 14.3% of homes for sale were reduced in price in June, and there's a 14.4% gap between average asking prices on new listings (£427,000) and prices agreed under offer (£373,000). Yet the wider market remains steady: 667,000 homes have sold subject to contract year-to-date, ahead of both 2024 and 2023 levels, and prices per square foot are up 1.94% year on year at £350.22.
For sellers, the message is clear — realistic pricing from day one is the difference between a sale and a withdrawal. With our experience and track record in the local Leytonstone market, we are confident you’ll enter the market with purpose.
The market at a glance
Property consultancy TwentyEA's latest round-up adds further texture. New supply is up 2.7% year on year, led by growth in the sub-£200,000 price band, while demand has softened across all UK regions — Inner London down 10.4%. Some 38.4% of listings this year have seen at least one price reduction, with reductions rising in the South but easing in the North and Midlands.
There are brighter spots: fall-through volumes are down 10.6% year on year, and the average time to agree a sale remains stable at 76 days — though £1m+ homes now take 114 days on average, and the typical time to exchange has crept up five days to 130.
For anyone weighing up a move in Leytonstone this summer, the picture is one of a functioning but discerning market: buyers are out there, but they know their worth — and sensible pricing, particularly for well-presented two and three-bedroom homes, remains the surest route to a sold sign.
We make sure you make an informed move
If you would like to learn more about Leytonstone, what the area has to offer, and how to achieve your goals in the local property market, we can help. To arrange an appointment, call us on 020 8558 1147 or send us an email at info@tradingplacesproperty.com
You will find Trading Places Estate and Letting Agents at 46 Church Lane, Leytonstone, London, E11 1HE; and we look forward to assisting you.
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