UK Market Outlook: Q1 2026

Cautious growth and the return of stability. The first quarter of 2026 in the UK is defined by "selective stability". Following the interest rate adjustments of late 2025, the property and retail sectors are showing genuine signs of recovery.

• GDP and Inflation: Growth for 2026 is forecasted at 1.2%, with inflation finally settling within the 2.1% - 2.5% target range.
• The Property Sector: The spotlight has shifted towards high-quality ESG assets and the robust Build-to-Rent sector.
• The Opportunity: International capital is flowing back into London, taking advantage of the clearer fiscal landscape following last autumn's budget.