A rise in confidence follows November Budget and interest rate cut
A LEADING Welsh housebuilder is predicting a strong housing market in 2026 after reporting a sharp rise in enquiries and reservations following November’s Budget.
Talbot Green-based Llanmoor Homes says buyer confidence is beginning to return after what it described as a challenging year for the housing sector in 2025, largely driven by political and economic uncertainty.
Sales Director Tim Grey said many prospective buyers had delayed decisions over the past year amid concerns about the wider economy and potential changes to personal taxation.
“While Llanmoor performed well and saw healthy visitor numbers across our developments, 2025 was undoubtedly a difficult year for the housing market as a whole,” he said.
“A lack of confidence meant many buyers were reluctant to take their first step onto the housing ladder or move from an existing home.”
Mr Grey said sentiment began to shift following November’s Budget, which proved less severe than many had feared.
“There had been widespread speculation about potential changes to personal taxation which would have further affected affordability, but these thankfully failed to materialise,” he said.
“As a result, since the end of November we’ve seen a significant increase in enquiries and reservations across our developments in South Wales.”
The renewed optimism has been further boosted by the Bank of England’s decision to cut interest rates by a quarter of a percentage point to 3.75%, the lowest level since early 2023. The move is expected to lead to more competitive mortgage products becoming available.
Confidence in the market has also been reflected in the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey, which found that 32 per cent of Welsh respondents expect home sales to rise over the next three months.
“With the combination of reduced mortgage costs and continuing rises in rental prices, 2026 will be an excellent year for first-time buyers to consider purchasing their own home,” Mr Grey added.
“And with applications to the Help to Buy Wales scheme open to buyers of new homes until September 2026, there has rarely been a better time to buy.”
Llanmoor Homes reported a busy year in 2025, beginning work on its first development in Monmouthshire at the 51-home Rossers Field site in Govilon, and unveiling plans for a major 850-home development in Bridgend.
The family-run developer has also recently invested more than £3 million to ensure all new homes are fitted with air source heat pumps, improving energy efficiency and reducing carbon emissions as part of its commitment to environmental sustainability.
