Buying a home in a slow market has pros and cons.
The good news is that house hunters have plenty of choice right now, and because they face less competition for homes, deals can be done.
But since prices are unlikely to see significant growth for the next five or more years, choosing the right property has rarely been more crucial if you want to make your money back when you move on.
As the 2026 market opens for business these are the five red flag property types buyers should tread carefully around.
A fixer upper may not be as good a deal as it seems
Gareth Fuller/PA Wire
There are many brilliant reasons to buy a home in need of major work, from the satisfaction of bringing a neglected home back to life to the chance to put your own stamp on your living space.
But rising build costs mean that unless you are extremely handy with the power tools a romantic wreck could end up costing you more than a move in-ready alternative that just needs a lick of paint.
Putting in a new kitchen will cost £10,000-plus according to the Homeowners Alliance, an extension will come in at up to £60,000, and dealing with damp could set you back £16,000.
And don’t forget that if you buy something really uninhabitable you’ll have to pay for somewhere to stay while the work is being done.
£60,000
The average cost of an extension now
Since prices are rising slowly, if at all, the days when you could do a Property Ladder style upgrade and earn a hefty profit are gone, particularly if the work you do doesn’t add significant extra floorspace.
On this basis fixer uppers only work if you plan to live in the property for a good long time — potentially decades — in order to recoup your expenses.
“Renovation-heavy properties are not for the faint-hearted and in 2026, with stretched budgets, buyers should be aware,” warns buying agent Nina Harrison, of Haringtons UK.
“Rising build costs, long timelines and everyday disruption can quickly drain both energy and finances.
“Anyone taking on a project should build in a serious contingency, expect delays and plan for every eventuality.”
Bad location, basement flat, no amenities….
Proximity to the tube is becoming more important again
Ross Lydall
Some properties are cheap for a reason, and in some cases those reasons — dated décor, a short lease — can be fixed.
But there are some problems that no amount of cosmetic attention can upgrade, and buying agent Camilla Dell, managing partner at Black Brick, warns that anybody picking up a basement flat or in a location without good amenities within a short walk could find themselves struggling when it comes time to sell on.
“Often the price can be tempting on ground and lowers, but buyer beware,” she says.
“They can be dark, suffer from damp, come with increased security issues, and are much harder to sell as many buyers will avoid even looking at flats on ground or lower ground floor. “
Buying on the promise that the high street might sharpen up one day is a gamble, not a given
Nina Harrison
Buying agent Sara Ransom of Stacks Property Search says proximity to local amenities, particularly public transport, are also a crucial consideration.
“During the post-Covid work from home era distance to the nearest Tube station became less of a priority,” she says.
“But the situation is slowly reversing, and future buyers are likely to seek out properties with an under-fifteen-minute walk to the nearest Tube.”
Similarly, buyers will want to live close to a decent high street — and Harrison feels it makes little sense to buy in an area in the hope that it will go up in the world.
“Buying on the promise that the high street might sharpen up one day is a gamble, not a given,” she says.
“Without real regeneration already underway, established neighbourhoods tend to offer far more certainty.”
A third of first-time buyers are eschewing flats in favour of semi-detached houses
Daniel Lynch
Back in the day buyers would make multiple small steps up the property ladder. But with price growth stalled and moving costs high, smart buyers stay put for longer.
According to recent research by property portal Zoopla the average British homeowner currently moves house once every 23 years. In 1988, a similar study put the average time between moves at nine years.
“Buyers should be careful with very small flats that they will outgrow quickly,” warns Jake Strubel, of estate agent Winkworth in Harringay.
“You end up paying two sets of buying and moving costs and often without the capital growth to cover it.”
As a result, research by Barclays suggests a third of first time buyers are leapfrogging the flat phase of life and picking up semi-detached houses which they see as forever homes.”
If you are going to buy a flat, and if you are set on staying in London you may not have a choice, then you need to do plenty of service charge research.
According to estate agent Hamptons the average annual service charge in London now stands at £2,633, up an inflation-busting 39 per cent in the past five years.
So, while a flat with a share of freehold might cost more upfront, your bills might actually lower once you are in.
And don’t assume that only swanky buildings with porters and swimming pools have excessively high charges.
In reality, in this woefully unregulated sector of the property market, even very modest homes can attract top-drawer bills, with owners regularly complaining that freeholders and managing agents overspend on unnecessary work and then pass the costs onto them.
Harrison recommends looking closely at service charges before committing to an apartment purchase.
“Paying for quality maintenance and a healthy sinking fund makes sense,” she says. “Mystery costs do not.
“Accounts and forward-looking maintenance plans should be reviewed before committing.
“And those glossy amenities? If you don’t think you will ever use them, they quietly push monthly costs up without adding much real value to your life.”
New builds should be approached with caution
PA Wire
A lot of buyers love the idea of buying a brand new home — no hassle, no DIY, lower heating bills, and a box fresh aesthetic.
But in a market that is highly price sensitive, the fact that new homes come at a premium of up to 20 per cent compared to resale properties means the lure of a bathroom nobody else has ever used and perfect paintwork is becoming harder to justify.
As a result, sales volumes for new homes fell 54 per cent in London in the first ten months of 2025, compared to the same period last year, according to online estate agent Yopa.
The problem is that not only are new homes more expensive than resale property but, just like shiny new cars, once you’ve lived in them for a while their value drops.
“New builds can be great homes but people should remember they come with a premium,” says Strubel.
“Values sometimes move more slowly in the first few years compared with older housing stock.”
With resale in mind Harrison is also lukewarm about new homes, particularly if they are within “cookie cutter” developments.
“Large developments with identikit apartments also deserve caution,” she says.
“Unless a flat stands out through its position, view or outside space, resale often becomes a pricing battle. Being one of many rarely puts you in a strong position when you come to sell.”
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