Mannleys Market Watch – December 2025
Welcome to this month’s property market update from Mannleys Sales & Lettings. Here’s a roundup of where things stand right now — and what to keep an eye on in the coming months.
Massive lettings changes in 2026: what landlords need to know (and how to get ahead)
2026 is shaping up to be the biggest shake-up the private rented sector has seen in decades. New rules will change how tenancies are created, managed, ended and enforced — and for many landlords, “business as usual” won’t be an option.
Below is a practical overview of what’s coming, why it matters, and how to prepare.
1) The end of Section 21 and a new tenancy framework
From 1 May 2026, the reforms begin to take effect, with Section 21 ‘no fault’ evictions ending and a move to open-ended (periodic) tenancies as the default for new tenancies.
What this means in practice
Regaining possession will rely more heavily on the correct use of statutory grounds and good record-keeping.
Landlords and agents will need tighter processes around tenancy conduct, rent arrears, and property management evidence.
2) Rent changes, bidding bans, and “rent in advance” limits
The reforms also tighten parts of the letting process — including restrictions designed to prevent rental bidding wars and to formalise rent increase rules (for example, limiting the frequency of rent increases).
Why this matters
Setting the right rent at the start becomes even more important.
Landlords may need stronger referencing and affordability checks, particularly where limits apply to taking large amounts of rent upfront.
Shelter England
3) Stronger tenant rights around pets and discrimination
The new framework is expected to make it easier for tenants to request a pet and introduces stronger protections aimed at preventing discrimination (including around families with children and those in receipt of benefits).
Landlord takeaway
You’ll want to review your advert wording, application process, and decision notes to ensure compliance.
Insurance, lease clauses, and property suitability checks will matter more than ever.
4) More enforcement and a changing compliance environment
Government guidance makes clear these reforms are intended to be backed by stronger enforcement and a more accountable system for private renting.
Alongside this, the wider policy direction includes raising minimum property condition expectations, with proposals to extend standards such as the Decent Homes Standard into the private rented sector.
Practical impact
Compliance isn’t just “paperwork” anymore — it becomes a risk-management priority (and a reputational one).
Proactive property condition reviews could save significant cost and disruption later.
5) A phased rollout — and more to follow after May 2026
While 1 May 2026 is a key start date, reputable sector guidance notes that some elements are expected to be implemented in phases, with additional measures following via further regulations.
Bottom line: preparation in early 2026 will pay dividends.
Landlords Webinar: get prepared, stay compliant, protect your rental income
To help landlords navigate these changes with confidence, Mannleys is hosting a free landlord webinar covering:
What changes first (and when)
Tenancy strategy under periodic agreements
Possession planning and evidence basics
Rent setting and “front-end” risk reduction
Compliance checklists and practical next steps
Live Q&A with our lettings team
Register your interest
If you’d like an invite, register your details and we’ll send:
the webinar date/time,
joining link,
and a pre-webinar checklist so you can review your portfolio in advance.
Reply with: your name, email, and how many properties you let — and we’ll get you booked in.
Shropshire Property Market Sales Overview
The Shropshire property market has continued to show underlying resilience, despite uncertainty in the run-up to the Autumn Budget. Across key local areas including Shrewsbury, Telford, Bridgnorth, Oswestry and Ludlow, transaction levels have remained steady, with realistic pricing helping buyers and sellers to keep moving. Now that there is greater clarity following the Budget, confidence is expected to improve, supporting activity into 2026.
Inflation and Interest Rates
The Bank of England held the Base Rate at 4% in November, reflecting a cautious national approach as inflation remains above target. Inflation rose by 3.8% in the year to September, slightly softer than expected. Forecasts suggest inflation may ease to around 3.6% by the end of this year, with more meaningful improvement expected next year, falling towards 2.4% by the end of 2026¹.
For Shropshire buyers, particularly those looking at family homes and rural properties, any further easing in inflation or interest rates would be welcome news. While most economists expect the next interest rate cuts to come in 2026, even small improvements could provide additional relief for borrowers and improve affordability across the county.
Mortgage Rates: Slight Upward Movement, Strong Choice
After a period of stability, mortgage rates have edged up slightly since early autumn. The average two-year fixed rate (75% LTV) increased from 4.1% to 4.2%, with five-year fixed rates following a similar pattern³.
That said, choice remains strong. Mortgage product availability is still significantly higher than two years ago, giving Shropshire buyers a wide range of options — particularly important for first-time buyers in Telford and Shrewsbury, as well as those upsizing or relocating into Shropshire’s popular market towns and villages.
Resilient Mortgage Approvals
Mortgage approvals have remained robust, signalling continued underlying demand. In September, approvals reached 65,944, the highest level since December 2024 and slightly above long-term averages³.
Locally, this resilience is reflected in steady enquiry levels across Shropshire, particularly for well-presented, sensibly priced homes. While some buyers remain cautious, improved certainty following the Budget is expected to help unlock delayed decisions over the coming months.
Mixed but Improving Market Activity
Transaction levels edged higher in September¹, and real-time indicators suggest activity across the Midlands remains stronger than in many southern regions². In Shropshire, demand continues to be supported by lifestyle buyers, commuters, and those relocating from larger urban areas in search of space and value.
There has been a slight increase in fall-throughs nationally, reflecting ongoing challenges around finance, chains, and shifting buyer sentiment³. However, local agents are seeing improved momentum where pricing is realistic and properties are well marketed.
The latest RICS survey points to some short-term caution⁴, but with Budget-related uncertainty now largely resolved — and changes less severe than anticipated — activity in Shropshire is expected to strengthen as we move into 2026.
Outlook for Shropshire
Overall, Shropshire’s housing market remains stable and well-positioned, supported by its strong lifestyle appeal, attractive market towns, and relative affordability compared to many parts of the UK. With improved clarity, steady mortgage approvals, and buyer demand still present, the foundations are in place for a positive year ahead.
Mannleys Sales & Lettings Commentary
From our perspective on the ground, the Shropshire market continues to reward realistic pricing, strong presentation, and proactive marketing. Properties that are priced correctly from the outset are still attracting good levels of interest, often achieving agreed sales within sensible timescales, while over-ambitious pricing can lead to extended marketing periods and price reductions.
We are seeing particularly healthy demand for family homes, character properties, and well-located homes in and around Shrewsbury, Telford, Bridgnorth, and Shropshire’s popular villages, with buyers placing increased value on space, energy efficiency, and lifestyle.
With greater economic clarity now in place and mortgage availability remaining strong, confidence is gradually improving. Buyers are becoming more decisive, and sellers who take a well-informed approach are putting themselves in the best possible position for a successful move.
As always, our advice is simple: seek local expertise, price strategically, and be prepared. At Mannleys Sales & Lettings, our experienced team continues to guide clients through every stage of the process, ensuring smooth transactions even in a changing market.
If you’re considering buying, selling, or letting in Shropshire, now is an excellent time to have a conversation — we’re here to help you move forward with confidence.
