The Reading Property Market: 2025 Review and What We Expect in 2026
What really happened in the Reading property market in 2025 – and what does it mean for 2026?
Our MD Rob Milne breaks down the facts behind the headlines, using real WhiteKnights sales data and local insight to explain where the market stands and what lies ahead.
As 2025 draws to a close, it’s clear that the Reading property market has done something quietly impressive: it stayed resilient in a year where confidence, affordability and timing were constantly tested.
National headlines painted the housing market in broad strokes, but Reading has always behaved differently. Its mix of first-time buyers, family movers, commuters and long-term owners creates a market driven more by lifestyle and employment than speculation. That’s been especially evident over the past 12 months.
What We Saw First-Hand at WhiteKnights
Before we talk about sentiment, predictions or what 2026 might bring, it’s important to ground everything in what actually happened in Reading over the past 12 months. While headline figures provide useful context, the clearest picture always comes from completed sales.
In 2025, WhiteKnights sold 101 homes across Reading and the surrounding areas, with a combined asking price value of just under £65 million as of mid-December. Using asking prices, the average property value sold was approximately £640,000, reflecting the strong proportion of family and long-term homes within our market.
At the top end, the most expensive home we sold this year was in Maiden Erlegh Drive, Earley (locally known to be a highly desirable address), with a guide price of £1,300,000. The property was placed under offer in July and successfully exchanged completed just last week - a reminder that higher-value homes do sell in Reading when priced correctly and marketed with care, even if the journey takes longer.
This mix of price points highlights a key theme of 2025: activity never disappeared, but buyers became more deliberate. Homes that launched well, with realistic pricing and strong presentation, continued to progress through to completion, regardless of whether they sat at £300,000 or £1.3 million. Of course, at WhiteKnights we have a team of dedicated sales progressors, and they really did earn their keep this year!
Why Reading Continues to Attract Buyers and Investors
Reading remains one of the UK’s most compelling property markets outside London, underpinned by a strong and diverse local economy. Often described as the capital of the Thames Valley, the town combines excellent connectivity with long-term employment stability, making it consistently attractive to both home movers and investors.
With direct rail services placing central London within around 25 minutes, fast access to Heathrow, and immediate links to the M4 corridor, Reading continues to draw professionals who want space, value and quality of life without losing access to the capital. The arrival and expansion of the Elizabeth Line has only strengthened this position, widening the commuter catchment and reinforcing demand across surrounding areas such as Earley, Woodley and Lower Earley.
A Commercial Hub with Long-Term Stability
Reading’s economy is anchored by a concentration of global employers, particularly within technology and professional services. Major organisations including Microsoft, Cisco, Ericsson, Apple, IBM, Procter & Gamble and Hewlett Packard Enterprise all maintain a significant presence locally, contributing to a highly skilled and well-paid workforce. This concentration of international employers creates a level of resilience that many towns simply don’t have.
Alongside global names, Reading benefits from a strong base of small and medium-sized businesses, start-ups and professional services firms. The Thames Valley Science Park, University of Reading, and surrounding business parks continue to support innovation, research and commercial growth, ensuring demand for housing remains broad-based rather than reliant on a single sector.
What This Means for the Property Market
For homeowners considering a sale in 2026, this economic backdrop matters. Strong employment, diverse industries and sustained inward investment support long-term buyer demand, particularly for family homes and well-located commuter properties. For investors, it reinforces Reading’s position as a town where demand is driven by fundamentals rather than short-term trends.
At WhiteKnights, we see this play out daily through consistent interest from both local movers and buyers relocating into the area for work. It’s one of the key reasons Reading has continued to perform steadily through changing market conditions; and why it remains well positioned heading into 2026.
What happened overall in Reading during 2025?
According to the Office for National Statistics, the average house price in Reading stood at £349,000 in September 2025, down 3.2% year-on-year. That headline figure tells only part of the story.
What we saw on the ground was not a collapse, but a correction in expectations. With more homes available than at any point in the last decade, sellers became more realistic. Pricing mattered again. Homes that launched well sold. Those that didn’t… didn’t.
From our own completed sales in 2025, WhiteKnights transacted just under £65 million worth of property across Reading and surrounding areas as of mid-December. Activity peaked in the spring following the stamp duty changes, eased through the summer, and remained steady into autumn - a pattern mirrored nationally.
A Market Split by Property Type
Detached and well-presented family homes continued to perform strongly, particularly in areas offering school catchments, parking and outdoor space. Flats and smaller units were more price-sensitive, especially where service charges or lease lengths became a factor.
First-time buyers remained active, with the average price paid sitting at £308,000, slightly down year-on-year. This was less about falling confidence and more about buyers becoming selective - choosing better value, better condition, and better long-term fit.
Mortgage Rates Helped Restore Momentum
One of the most important shifts in the second half of 2025 was mortgage pricing. As lenders competed, average rates dipped below 5%, restoring affordability at the margins and allowing buyers to act with confidence.
This mattered. Even modest rate reductions had a psychological impact. Buyers stopped waiting for “perfect” conditions and started making decisions again - particularly those who had delayed moves through 2023 and 2024.
The Rental Market Told a Different Story
While sales prices softened slightly, rents in Reading continued to rise, reaching an average of £1,574 per month, up 7.1% year-on-year. Demand remains strong, supply remains constrained, and this imbalance is unlikely to correct quickly.
While WhiteKnights focuses exclusively on sales, it would be impossible to ignore the impact of the rental market on decision-making in Reading. Rising rents, regulatory pressure and longer-term uncertainty have led many landlords to reassess their position.
For some, 2025 was the year to sell up, releasing capital while buyer demand remained steady. For others, it was a chance to buy additional stock, supported by easing mortgage rates and strong tenant demand.
Either way, the rental market continues to feed directly into sales activity - particularly in the sub-£350,000 and family home brackets.
The Hidden Challenge: Time
One issue that deserves more attention is transaction length. Across the UK, the average time to exchange now sits at around 4.1 months, significantly longer than pre-pandemic norms.
In Reading, this has real consequences. Longer timelines increase fall-through risk, expose buyers and sellers to interest rate changes mid-transaction, and put pressure on chains. It’s why preparation, documentation and realistic pricing have become just as important as marketing.
So, What Do We Expect for 2026?
Most major lenders and analysts are aligned: modest house price growth of between 1% and 3% is the most likely outcome.
Nationwide leans slightly more optimistic, Halifax more cautious, but both agree on the fundamentals:
- Mortgage rates are easing
- Wage growth has outpaced house price growth
- First-time buyer lending is at record levels
- Confidence is returning, slowly but steadily
For Reading specifically, we expect stability rather than surge. Well-priced homes will sell. Over-ambitious pricing will be challenged quickly. Buyers will remain informed and selective.
Our Advice Going Into 2026
For sellers, 2026 will reward clarity and preparation. The strongest results will come from homes that launch well, are priced correctly from day one, and are backed by an agent who understands completion, not just instruction.
- For buyers, the advantage lies with those who are positioned early - finances agreed, criteria clear, and registered properly. The best homes rarely wait.
- For landlords, ongoing rental demand remains strong, but legislative change and rising costs mean strategy matters more than ever.
Final Thoughts
The Reading market in 2025 proved one thing above all else: property still moves when people are ready, informed, and realistic. From first-time buyer homes to Reading’s most prestigious addresses, the lesson from 2025 was consistent: preparation, pricing and professional guidance mattered more than ever.
As we head into 2026, we don’t expect fireworks - but we do expect opportunity. And as ever, those who plan early tend to move best. Even against a backdrop of rising UK unemployment, Reading stands out, with local employment levels remaining stronger than the national average, an important consideration for those buying, selling or investing in the area in 2026.
If you’d like a Reading-specific conversation about where your home sits, or how 2026 could look for you, our team would be happy to help.