As we step into 2026, we take a deep dive into the latest property market trends in Gloucester, analysing key figures and what they mean for buyers and sellers.
One month down already and it was certainly a busy one for the Gloucester property market.
In our usual monthly article we take a look back at the previous month and provide some data and analysis on what happened to Gloucester property and provide some insight as to what may lie ahead
Prices
Average asking prices in Gloucester reached £296,474 which is annual increase of 2.2%. Gloucestershire as a whole saw average asking prices at £386,704 which represented a decrease of 1.2% over the past year. Average prices are expected to rise by around 3% through 2026.
Interestingly though. of those properties currently available for sale, a third have had at least one price reduction since first coming to the market which is a stark reminder of the need to be sensible when first advertising your property for sale.
There are plenty of estate agents over valuing your property just to win your business before tying you in to lengthy contracts, only to then spend the majority of that contract telling you, you need to reduce your price.
Remember that a lot of the valuers who come to see you are personally rewarded for getting your house on the market rather than actually selling it which may explain some of the over inflated figures.
In Gloucester and across GL1, 2, 3 and 4 there were 211 price reductions through the month of January with one agent reducing almost one property, every day of the month. Is that good marketing or is that getting it wrong in the first place?
Properties For Sale
Properties in Gloucester are currently taking on average 59 days to sell which is 6 days faster than the average for this time last year. It also places Gloucester firmly within the top 10 fastest of England’s 50 largest cities.
January saw sales agreed on 316 properties across GL1, GL2, GL3 and GL4 whilst the figure for the same period last year was 285. Is this a sign of an improving market or down to the fact that there are far more properties available?
The number of homes currently available across the UK for sale is at its highest level since 2014 for this time of year.
As of 31st January, there were over 1000 properties unsold across the four Gloucester postcodes. At the same time in 2025 there 859 unsold properties across GL1, GL2, GL3, GL4.
Interestingly one estate agency firm has over 20% of these unsold properties on their books whilst another has over 10%. That is a lot of properties to try and focus on selling!
These unsold properties are broken down as follows –
GL1 – 273 properties
GL2 – 341 properties
GL3 – 221 properties
GL4 – 178 properties
Of the 1013 properties unsold on the Gloucester property market at the end of January, 648 had been on the market for at least 8 weeks (the average time taken to sell a Gloucester home), whilst 532 of those had been on the market unsold for 12 weeks or more.
If we delve a little deeper then it shows 407 (40%) of the properties are priced under £250,000, 344 (34%) of the properties are priced between £250,000 and £400,000, 141 (14%) are priced between £400,000 and £500,000 with 124 (12%) priced over half a million pounds.
Mortgages
With the Bank of England choosing to cut the base rate of interest just before Christmas, the start of 2026 saw many lenders cutting rates to attract new business.
Those with a higher deposit can benefit from fixed rates below 3.5% whilst for first time buyers, Santander launched a new 98% mortgage product.
Average mortgage rates are now at their lowest level since 2022, and buyers can plan a new move with less financial uncertainty alongside improved affordability for many.
With more available products to choose from than there has been for some time, it is a good idea to speak to an independent financial advisor who can explore all the options available to you and make sure you are getting the best possible deal.
A further early cut to the base rate was quashed by the rise in inflation to 3.2% but as the year unfolds, analysts predict a further two or three base rate cuts with the next one likely to be April. This should provide further confidence to buyers as we head towards a base rate of 3 – 3.25% by year end.
Summary
Property prices appear unlikely to change significantly throughout the year and the property market could be set for a much-needed year of stability.
Mortgage rates should continue to fall, albeit gradually and for those looking to get on the property ladder there is certainly more support than there has been for some time.
There remains plenty of choice for buyers and anybody looking for property would do well to make sure they are maximising their search options - increase your budget by a price band or two. A lot of property has been on the market for a considerable time and may be open to some negotiation. Also widen your search area as there may be a perfect property sitting a fraction outside your current radius.
Sellers need to strike a balance between price ambition and market realism when setting your asking price to give yourselves the best chance of finding a buyer and getting your home sold. Choose your estate agent wisely. Are you being lulled in by an over inflated asking price, given to you by an agent who is only interested in winning your business rather than selling your home?
Whether you are buying, selling or both, there is reason for optimism and confidence and if the time feels right, and you are in a position to do so then press ahead with your plans now.
As always we appreciate your thoughts and comments on the Gloucester property market and are happy to answer any questions you have or provide any assistance for with your home moving plans.
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