Policy Update

SJW Properties — London Residential Property Market Report · Q2 2026

1. Policy Update Overview

In Q2 2026, the UK property market continued to be shaped by policy adjustments. More than house prices themselves, reform of the rental system, the tax environment and housing-supply policy are influencing the decisions of buyers, landlords and investors at a deeper level.

Key Policy Changes

Policy	Key points
Renters’ Rights Act (rental reform)	From May 2026 the Act entered its implementation phase, further strengthening tenant rights and raising compliance requirements for landlords and property management. For investor-landlords, holding and management costs have risen further.
Stamp Duty Land Tax	Overseas buyers remain subject to the Non-Resident SDLT Surcharge. SDLT continues to be an important cost factor in international investors’ asset allocation.
Housing Supply	The government continues to push for greater housing supply and to encourage local authorities to accelerate residential development and planning approvals, in order to ease the long-term housing shortage.
Financing Environment	Although the market expects the possibility of further rate cuts, financing costs remain markedly higher than during the pandemic period, and buyers are paying closer attention to cash flow and long-term holding costs.

Why It Matters

● Policy change directly affects net yield and long-term holding costs.

● A growing number of overseas landlords are reassessing whether to continue holding UK residential assets.

● Owner-occupiers are relatively less affected by policy, focusing more on long-term quality of life and education resources.

● The market is gradually moving from policy-driven uncertainty towards value-driven competition on asset quality.

SJW Market Observation

Based on SJW’s frontline observation in Q2 2026, policy change has not noticeably weakened international buyers’ long-term confidence, but it has changed the decision logic of different client types. Investor clients focus more on tax, rental regulation and cash flow; education-driven families continue to show stable demand; and Super Prime buyers focus more on asset scarcity and long-term value than on short-term policy fluctuations.

Sources: Gov.uk · UK Parliament · Department for Housing, Communities & Local Government · HMRC · Bank of England · Reuters · BBC News