UK Housing Market in 2026: What Buyers and Sellers Should Expect This Year
A calmer year, but not a quiet one
After a slower finish to 2025, the mood heading into 2026 is less about sudden rebounds and more about stability. The market is still shaped by affordability, household budgets, and confidence, but there are also clearer signs of resilience than many expected a year ago.
Nationwide’s latest housing market outlook expects UK house price growth to be in the 2% to 4% range in 2026, which is a useful “middle path” between boom and slump.
https://www.nationwide.co.uk/media/hpi/
At the same time, the interest rate environment has already shifted. The Bank of England cut Bank Rate to 3.75% on 18 December 2025, lowering the baseline cost of borrowing compared to much of the past two years.
https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp
Put together, many forecasters see 2026 as a year where buyers and sellers can make decisions with a little more breathing room, even if the market remains selective.
What leading forecasts suggest for prices
The most consistent message from major forecasters is that price growth is likely to be modest and uneven, rather than rapid or uniform.
Savills’ mainstream forecast expects UK house prices to rise gradually, projecting 24.5% growth over the five years to 2029, which implies a steady multi-year recovery rather than a single year surge.
https://www.savills.co.uk/research_articles/229130/379365-0
Hamptons similarly expects growth to be “modest but positive”, forecasting a 2.5% rise across Great Britain in Q4 2026, while highlighting that affordability will be an important driver of where growth is strongest.
https://www.hamptons.co.uk/research/reports/forecasts-2025
The shared theme is that the market is expected to move forward, but at a pace that depends heavily on local conditions.
Regional differences are likely to matter more than headlines
If 2026 has a “story”, it may be that national averages hide the real action. Areas where affordability is less stretched and demand is anchored by employment and lifestyle moves are often better placed in a steadier market.
Hamptons explicitly expects the Midlands and the North to lead price growth, driven by stronger affordability.
https://www.hamptons.co.uk/research/reports/forecasts-2025
For buyers, this means opportunities may be more visible outside the most expensive pockets. For sellers, it means pricing strategy matters. In a slower growth market, the best outcomes often come from being realistic early, rather than testing the ceiling and having to reduce later.
What interest rates could mean for 2026 activity
Borrowing costs do not need to collapse for the market to function, they just need to feel predictable. With Bank Rate now at 3.75%, the backdrop for mortgage pricing is more supportive than it was when rates were at their peak, and that can help both buyer confidence and transaction flow.
It is still worth remembering that mortgage rates are influenced by more than the base rate alone, including funding markets and lender competition, so borrowers should focus on the deals available to them rather than assumptions about where rates “should” go.
Practical takeaways for buyers and sellers this year
If you are buying in 2026, focus on controllables. Get your paperwork organised, understand your borrowing range, and treat location fundamentals as more important than short term market noise. In a steadier market, negotiation can be more balanced, especially when you are well prepared.
If you are selling, expect a more price sensitive audience. Buyers may move more carefully, but they are still active, particularly when homes are well presented, correctly priced, and positioned clearly against local comparables.
How Altura can help you plan your next move
Whether you are buying, selling, or doing both in the same year, the decisions tend to be more connected than people expect. At Altura Mortgage Finance, we help clients map out the full picture, from affordability and lender criteria through to timing considerations, so you can move with clarity rather than guesswork.
If you would like to talk through your options for 2026, get in touch with Altura Mortgage Finance, or explore more guidance in our Insights series.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Think carefully before securing other debts against your home. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Altura Mortgage Finance Limited is authorised and regulated by the Financial Conduct Authority. Firm Registration No: 827849 www.fsa.gov.uk/register/home.
