UK House Price Predictions for 2026
A Concise Market Overview
Overview
The UK housing market is expected to stabilise and modestly improve in 2026, following a subdued
end to 2025. Rather than a boom, 2026 is shaping up to be a year of measured recovery and
rebalancing.
Key Takeaways
• National house prices forecast to rise by around 2%
• Stronger growth expected in Scotland, Wales, and northern England
• London and southern England likely to lag
• First-time buyers are better placed than in recent years
• High-value homes may remain sluggish ahead of the 2028 mansion tax
House Prices in 2026
New seller asking prices are expected to rise by approximately 2% nationwide by the end of 2026.
Price growth is forecast to remain below wage growth and inflation, improving affordability in real
terms.
Affordability and Buyer Confidence
Affordability is improving due to wage growth outpacing prices, easing mortgage rates, and lenders
gradually relaxing affordability criteria.
Economic Backdrop
Further interest rate cuts, stabilising inflation, and rising wages should support steady housing
market growth.
Regional Outlook
Lower-priced regions are expected to outperform, while London and southern England remain
constrained.
First-Time Buyers
Conditions are more favourable with more choice, improved negotiating power, and lower mortgage
rates.
Who May Struggle
The top end of the market may remain sluggish due to tax considerations and weaker demand.
Mortgage Rates Outlook
With the Base Rate around 3.75%, one or two cuts are expected. Two-year fixed rates may fall
faster.
Summary
2026 is likely to be a year of steady recovery rather than rapid growth, with local pricing and market
conditions remaining critical
A Concise Market Overview
Overview
The UK housing market is expected to stabilise and modestly improve in 2026, following a subdued
end to 2025. Rather than a boom, 2026 is shaping up to be a year of measured recovery and
rebalancing.
Key Takeaways
• National house prices forecast to rise by around 2%
• Stronger growth expected in Scotland, Wales, and northern England
• London and southern England likely to lag
• First-time buyers are better placed than in recent years
• High-value homes may remain sluggish ahead of the 2028 mansion tax
House Prices in 2026
New seller asking prices are expected to rise by approximately 2% nationwide by the end of 2026.
Price growth is forecast to remain below wage growth and inflation, improving affordability in real
terms.
Affordability and Buyer Confidence
Affordability is improving due to wage growth outpacing prices, easing mortgage rates, and lenders
gradually relaxing affordability criteria.
Economic Backdrop
Further interest rate cuts, stabilising inflation, and rising wages should support steady housing
market growth.
Regional Outlook
Lower-priced regions are expected to outperform, while London and southern England remain
constrained.
First-Time Buyers
Conditions are more favourable with more choice, improved negotiating power, and lower mortgage
rates.
Who May Struggle
The top end of the market may remain sluggish due to tax considerations and weaker demand.
Mortgage Rates Outlook
With the Base Rate around 3.75%, one or two cuts are expected. Two-year fixed rates may fall
faster.
Summary
2026 is likely to be a year of steady recovery rather than rapid growth, with local pricing and market
conditions remaining critical