Q1 2026: Brokers balancing confidence and change in a tech‑driven market – Moloney

After a year of recalibration, confidence is returning, powered by sharper competition, stronger lender appetite and a clearer regulatory backdrop following the Renters’ Rights Act. With rates holding steady and affordability gradually improving, brokers are entering the new year with optimism, backed by a market that’s ready to move again.

Opportunities are emerging for both buyers and landlords as the industry embraces innovation and looks ahead to a more dynamic year.

Market steadies after Budget blues

The late Autumn Budget delayed some lending decisions, but its impact on the housing market was less severe than expected. By December, activity had picked up, with many lenders eager to start the new year strongly, particularly across prime residential lending. Competitive rates and the desire to lock in early deals have kept brokers busy through what is usually a quieter period, leading into an active January.

Inflation continues to ease and wage growth remains steady, contributing to improving affordability. Combined with stable property values, this has helped sustain buyer confidence despite ongoing economic uncertainty.

First-time buyers leading early-year momentum

Improved affordability and higher-loan-to-value (LTV) lending continue to support first‑time buyers, who remain a key driver of early 2026 activity. Two- and five‑year fixes below 4% are boosting borrowing power, while flexible income assessments are making homeownership more accessible to single- and dual‑income households alike.

Brokers are reporting a notable rise in demand among younger buyers who delayed moving in 2025 but are now re‑entering the market. With clarity around recent tax and regulatory changes, buyer sentiment is more settled, supported by stable pricing and gradually improving confidence across many parts of the country.

BTL evolves amid professionalisation 

In the buy‑to‑let (BTL) sector, stronger regulation is accelerating a shift toward professionalisation. Roughly 70% of new BTL loans are now written in company names, reflecting landlords’ focus on efficiency and long‑term viability.

While landlords continue to see the cost of doing business rising, portfolio investors remain active, particularly in regions with strong rental growth. The Renters’ Rights Act is encouraging landlords to invest strategically and upgrade properties, making the private rented sector more resilient and professionalised overall.

Looking ahead to the rest of Q1 2026

The outlook for the remainder of the quarter is one of cautious optimism. Lenders are expected to stay highly competitive, launching new products early in the year to capture borrower interest. For brokers, success will depend on staying agile and balancing technology adoption with the personal guidance and service that technology alone cannot deliver.

Those who embrace innovation, adapt to regulatory change and continue building trusted client relationships will remain at the forefront of helping customers navigate the evolving mortgage landscape throughout 2026.