As 2026 begins, the UK property market is not entering a new cycle so much as continuing to recalibrate.

The past year was defined by restraint. Transaction volumes remained muted, price growth was modest, and confidence took time to recover following policy announcements and wider economic pressures. While 2025 did not deliver dramatic shifts, it left behind a series of aftershocks that will shape both residential and commercial property activity this year.

For law firms operating across conveyancing and commercial property, the implications go beyond market commentary. These conditions influence workflow consistency, client expectations and, critically, hiring decisions as firms plan for the year ahead.

Looking Back: How the Residential Property Market Performed in 2025

Residential property activity throughout 2025 was characterised by caution rather than contraction.

House price growth slowed significantly, with several major indices reporting flat or very modest annual increases by year end. Asking prices softened in the latter part of the year, and buyer confidence remained fragile as affordability pressures and mortgage costs continued to influence decision making.

Transaction volumes reflected this mood and Rightmove also reported that, while the market avoided a sharp downturn, overall activity remained below longer-term averages. Many buyers and sellers delayed moves, leading to elongated pipelines and a stop start flow of instructions for conveyancing teams.

For law firms, this translated into uneven workloads, with some months proving busier than expected and others quieter than planned. The firms that fared best were those able to flex capacity without compromising service delivery.

Regional Patterns: A Market Moving at Different Speeds

One of the clearest lessons from 2025 was the growing importance of regional variation.

London and parts of the South East continued to experience pressure, with affordability constraints and subdued demand limiting transaction volumes. In contrast, several regional markets demonstrated greater resilience, supported by first-time buyer activity, local employment growth and comparatively accessible price points.

Northern regions, the Midlands and parts of the North West saw more consistent levels of activity, even where price growth remained modest. For conveyancing firms operating nationally or across multiple offices, this divergence reinforced the need for regionally informed resourcing strategies.

As 2026 unfolds, this regional imbalance is expected to persist. Firms aligned to more active local markets may look to cautiously expand capacity, while those in slower regions may focus on retention, productivity and redeployment rather than outright growth.

Policy Aftereffects and Client Behaviour

Although major fiscal announcements were delivered towards the end of 2025, their influence will likely extend well into this year.

In the months surrounding these announcements, uncertainty shaped behaviour. Buyers hesitated, landlords reassessed portfolios and higher-value transactions slowed as clients waited for clarity on longer-term implications.

Importantly, many policy changes were not immediate, creating a holding pattern across parts of the market. As a result, conveyancing demand in the latter months of 2025 was driven as much by confidence and timing as by underlying need.

This mindset has not disappeared as 2026 begins from early conversations with clients in the sector either. Firms should expect clients to remain cautious, price sensitive and more demanding around communication and transparency.

Commercial Property: A More Nuanced Picture

While residential conveyancing often dominates headlines, commercial property followed a different trajectory in 2025.

Across offices, retail and industrial assets, performance was largely uneven. Transaction volumes improved in some quarters but remained below historical norms overall. Investment sentiment was broadly neutral, reflecting wider economic uncertainty and slower business expansion.

That said, certain segments showed resilience. Retail property, particularly in dominant locations, attracted renewed investor interest late in the year. Industrial and logistics assets also continued to perform comparatively well, supported by long-term structural demand.

Office markets remained more mixed, with occupier demand varying significantly by location and asset quality.

For law firms handling commercial property work, this translated into a more selective flow of instructions. Deals were often more complex, value driven and slower to progress, placing additional pressure on teams to manage risk, expectations and timelines.

What This Means for Property Law Firms in 2026

As both residential and commercial markets carry forward the lessons of 2025, several themes emerge for firms planning the year ahead.

Workloads are likely to remain variable rather than consistently high. Client expectations around service, communication and turnaround times will remain elevated. Margins will continue to face pressure, particularly where fee sensitivity is high.

In this environment, operational efficiency and people capability become differentiators rather than nice-to-haves – something we’re seeing across most practice areas if truth be told.

Hiring Implications for Conveyancing and Commercial Property Teams

Property-related hiring in 2026 is expected to be measured and deliberate.

Based on our experience of similar market conditions over our 27-year tenure, we forsee that many firms will prioritise experienced conveyancers and commercial property lawyers who can manage files confidently, handle complexity and maintain momentum even when transactions slow. The ability to keep matters progressing despite external delays is increasingly valuable.

At the same time, non-qualified roles remain central to sustainable delivery. Paralegals, case handlers and support professionals continue to underpin volume work, particularly where firms adopt structured team models that balance cost control with service quality.

Retention will also be a key focus. In a market where replacing experienced staff is costly and disruptive, investing in existing teams through development, flexibility and realistic workloads can deliver significant long-term benefit.

For firms operating across multiple regions or practice areas, hiring strategies may need to be more localised than in previous years, reflecting where demand is strongest rather than applying a uniform national approach.

Planning Ahead with Confidence

The overarching message from 2025 is not one of pessimism, but of discipline.

Growth opportunities will remain in 2026, but they are likely more selective. Firms that plan hiring in line with realistic market conditions, regional demand and evolving client expectations will be best positioned to navigate the year successfully.

Recruitment decisions made now will shape service delivery, team stability and profitability throughout the year ahead.

About Clayton Legal

Clayton Legal is a specialist legal recruitment consultancy with over 27 years’ experience supporting law firms and legal professionals across England and Wales. We work with firms of all sizes, from high street practices to national and international firms, providing permanent, interim and strategic hiring solutions across a wide range of practice areas.

Our consultants have deep market knowledge within property law, including residential conveyancing and commercial property, and work closely with firms to understand regional demand, workload patterns and longer-term workforce needs. Alongside immediate recruitment support, we provide market insight, salary benchmarking and guidance to help firms plan confidently in changing market conditions.

Whether you are reviewing resourcing levels, planning for growth, or focusing on retention and team stability, Clayton Legal works as a trusted recruitment partner to help you attract and retain the right legal talent. Get in touch today to discuss your hiring plans (or indeed, your own next move within the sector).