posted 4th January 2026
General Outlook — Modest Growth Expected
Experts broadly agree that UK house prices are likely to rise in 2026, but the growth is expected to be moderate rather than dramatic.
Many property analysts forecast modest price increases, typically in the 2% – 4% range over the course of 2026.
Rightmove’s own data also points to about a 2% rise in asking prices nationally by the end of 2026.
Lloyds Banking Group expects a similar ~ 1%–3% rise supported by easing interest rates and stronger real wages.
Recent market data shows house prices have already begun 2026 on a slightly stronger footing, with the average UK home price surpassing £300,000 and annual price growth around 1% so far.
What’s Driving the Trend?
Reasons house prices could rise in 2026:
Easing mortgage rates and interest rates: Some forecasts expect further Bank of England rate cuts, making borrowing a bit cheaper.
Improving affordability: Wage growth slightly outpacing house price increases may support demand.
Pent-up demand and greater activity after a subdued 2025.
Regional Differences
Growth won’t be uniform:
Stronger increases are expected in Scotland, Wales, and parts of northern England.
London and the South East may lag behind, with slower price gains or flat performance due to higher starting prices and affordability pressures.
Risks & Dampening Factors
Not all indicators are rosy:
Some estate agents report a sluggish start to 2026, with limited transactions in early months.
Broader economic uncertainty (inflation, cost-of-living constraints) could temper buying activity.
Summary
Most forecasts predict UK house prices will rise in 2026, but only modestly (around 1 – 4%).
Growth will vary by region, with stronger performance outside London and the South East.
Economic conditions and affordability remain key constraints on rapid rises.
