2026 UK House Price Outlook

The UK housing market is set for a stable, steady year in 2026, with national house prices expected to rise by around 2%. While this is modest growth, it marks a welcome return to balance after several years of uncertainty. Buyers have more choice, sellers are becoming more realistic with pricing, and agents are perfectly positioned to guide the market with expertise.

A calmer, more stable market

After a period of volatility, 2026 is offering both buyers and sellers a calmer environment. Increased stock levels mean those looking to move have better choice and less pressure, while sellers who price sensibly are continuing to achieve strong interest. With clearer conditions and fewer bidding wars, the market is becoming more predictable — ideal for confident, well-supported moves.

Budget clarity could boost activity

The upcoming Budget remains a key talking point. Any adjustments to property taxes could encourage hesitant buyers to re-enter the market, potentially increasing activity in the months following the announcement. Many prospective movers are currently in a holding pattern, meaning the release of this “pent-up demand” could bring renewed energy to 2026.

Strong fundamentals for long-term growth

Forecasters expect the wider economic picture to steadily brighten after 2026, with inflation easing, GDP improving and interest rates set to gradually reduce. These trends are expected to support stronger price growth from 2027 onwards. Buyers purchasing in 2026 may therefore benefit from improved affordability ahead and meaningful capital growth over the medium term.

Regions with the strongest potential

More affordable regions are predicted to outperform the national average over the coming years. The North East, Yorkshire & The Humber, Scotland, Wales and the North West all show strong value and growth potential, making them especially appealing for both homebuyers and investors. The Midlands are also expected to perform above average. London, while slower in near-term growth, continues to offer long-term stability and lifestyle appeal.

What this means for buyers and sellers

Buyers in 2026 will benefit from greater choice, more negotiating power and fairer pricing across much of the country. It’s a year where careful, strategic purchasing can pay off. For sellers, accurate pricing and strong presentation are more important than ever — well-marketed, sensibly priced homes are still selling quickly. Estate agents who offer expert guidance, clear valuations and strong digital marketing are well positioned to thrive in this balanced market.

Looking ahead

While 2026 may not bring dramatic price rises, it offers something arguably more valuable: stability. This steady foundation creates the ideal conditions for long-term planning, smart investment and confident moving. With medium-term forecasts pointing to stronger growth through to 2030, buyers and sellers who act in 2026 are well placed to benefit from improving conditions ahead.

Looking to move home in 2026?

Benwell Daykin provides free property valuations. Contact us today.

The Bank of England has lowered its base interest rate to 4.25%, a slight drop from the previous 4.5%. This is the fourth cut within the past year as policymakers continue to steer the economy through uncertain conditions. The decision reflects ongoing concerns about inflation and global trade tensions.

Why Has The Bank of England Made This Decision?

The central bank is facing a delicate balancing act. While inflation remains slightly above target, there’s growing pressure from slowing economic activity and trade disruptions. Rate cuts are intended to make borrowing cheaper, stimulate investment, and support consumer spending — especially in the face of international headwinds.

Bank of England Governor, Andrew Bailey, emphasised that future rate changes will likely be slow and cautious. While he avoided giving firm predictions, his comments suggest that additional cuts are possible if economic conditions remain fragile. His tone was steady, pointing toward a carefully managed decline in rates over time.

But not all members of the Bank’s Monetary Policy Committee were aligned. While a majority supported the 0.25 percentage point cut, some favoured an even deeper reduction, and others argued for no change at all. This division highlights the complexity of the economic situation and differing views on how best to respond.

What This Means for Mortgage Rates

For borrowers, especially those on variable-rate loans or tracker mortgages, the cut could lead to slightly lower monthly payments. However, with most homeowners locked into fixed deals, the immediate impact may be limited. Mortgage rate drops don’t happen immediately, but if you are coming to the end of your fixed period, remember to speak to a qualified mortgage advisor within the next month or so.

Average two- and five-year fixed deals are trending lower, offering some relief to those renewing their deals. Roughly 600,000 households with tracker mortgages will benefit more directly, with some seeing reductions of around £30 a month.

The Outlook for the Property Industry

The latest reduction in interest rates to 4.25% is likely to offer a modest boost to the property sector, particularly by improving affordability for prospective buyers. Lower borrowing costs can make mortgages slightly cheaper, encouraging more people to enter the housing market or upsize. This could help support house prices and transaction volumes, both of which have shown signs of softening in recent months.

However, the impact will be gradual, as the majority of homeowners remain on fixed-rate deals that won’t change until their renewal. For developers and investors, cheaper financing may ease pressure on project costs and improve margins, though wider economic uncertainty and cautious consumer sentiment are likely to temper any major surge in activity.

Ready To Make That Move?

Ready to make the most of this further drop in interest rates?
As more buyers look to enter the market, now may be a great time to sell. Book your free property valuation. You can also call us on 0115 990 2007.

Strong start for property market in 2025 according to Rightmove

The UK property market has seen an unprecedented surge in new sellers since Boxing Day, with average prices climbing by 1.7% to £366,189, according to Rightmove’s latest report. This marks the sharpest January price increase since 2020, reflecting strong momentum heading into 2025. While seasonal price rises are common, this year’s growth is notably pronounced.

The market currently feels like buyers have more confidence. Some are willing to bid higher on properties than they were doing last year, which could be due to the slight fall in mortgage rates and increased buyer activity. This heightened competition among buyers is driving up property prices, as bidding wars become more frequent and offers steadily grow.

Factors Driving Market Growth

There is also more positive news on the horizon. Inflation fell in November 2024, and as a result, mortgage rates could drop further in 2025. Lower borrowing costs may encourage even more buyers to enter the market, further fuelling demand.

Boxing Day has traditionally been the busiest day for visits to Rightmove’s website, and 2024 was no exception. The number of potential buyers sending inquiries to estate agents through the platform rose by 9% compared to the same time in 2023. This surge highlights the ongoing appetite for property at the start of the year.

Looking further into 2025, Rightmove anticipates an average 4% increase in asking prices across the board. To put this into perspective, a property valued at £250,000 today could be worth £260,000 by the end of the year, while a £500,000 home might rise to £520,000. These increases underline the strength of the market as it heads into a potentially robust year.

Advice for Sellers in 2025

However, it’s worth noting that some uncertainty could lie ahead. Changes to stamp duty, due to come into effect on April 1, may temper the market later in the year. Buyers and sellers alike should be mindful of this potential shift.

For sellers considering entering the market, now is an opportune time. The busy start to 2025 offers the perfect chance to attract motivated buyers. To make the most of this momentum, you can arrange a free, no-obligation property valuation by calling 0115 9902007 or contacting us through our website.

Ultimately, while there is optimism in the market, it’s important to act quickly to avoid potential slowdowns later in the year. Taking advantage of the early surge could help sellers achieve their desired price before any headwinds appear.

Get your free property valuation

Talk to Benwell Daykin today on 0115 990 2007 or contact us here.

It’s been a turbulent year for the property industry, with high interest rates and house prices fluctuating heavily. But now things could be changing. We take a look at house prices and the property market in autumn 2024.

House prices in autumn 2024

News released last week by Halifax suggest that property prices are on the rise once again.

Prices hit a two year high last month in August which shows the economy is now recovering after a dip earlier in the year.

The report suggests that prices increased 0.3 per cent last month and also rose 0.9 per cent in July.

This puts the average cost of a property in the UK at £292,505 and is the highest level since August 2022.

Looking at an annual basis, house prices were also up 4.3 per cent in August.

Why are house prices rising?

House prices tend to rise with demand. With the lowering of interest rates, confidence is now growing in the market once again.

August saw the Bank of England’s base rate drop from 5.25 per cent to 5 per cent. After this, most mortgage lenders lowered the rates on some of their products.

This in turn allowed better affordability for some, and encouraged others to look into purchasing a new home too.

Rising house prices is good news for home owners but not so good for those looking to take a step onto the housing ladder for the first time.

Affordability is still a problem for first time buyers, with many having to wait until their 30s to buy a home, or use the Bank of Mum and Dad.

London house prices in autumn 2024

London still remains as the most expensive place to buy a property in the UK.

The average property price in the capital is now £536,056, which is an increase of 1.5 per cent since last August.

London was hit hard by falling house prices earlier this year and last year but there now seems to be some recovery. Zoopla reports.

London is now 0.2 per cent positive growth at the end of the summer.

Nottingham house prices

Looking at house prices in Nottingham, growth is at 0.4 per cent year on year.

Nottingham has actually had a very good time for growth and there has been a small, steady increase in prices over 2024. Many other cities haven’t seen this sort of growth.

Interestingly, the East Midlands, on average, is down 0.1% year on year.

The average house price in Nottingham is now £203,100, according to Hometrack.

Our outlook for the housing market

We would expect the housing market to continue to grow over the next few months and into 2025.

Winter is traditionally a quiet month with not much growth, however we would expect a further interest rate cut later this year, if not early next, into the spring.

This is likely to boost prices further and confidence should again grow in the market overall.

How much is your house worth?

How much has your property grown in value since you purchased it? Talk to Benwell Daykin estate agents Nottingham for a free, no obligation property valuation.

You can also contact us to discuss the market in more detail.

The general election is here and Thursday will see us all go to the polls to decide on who will be leading the country.

Although housing is not top of everyone’s agenda this time around, it’s still an important subject that many home owners, and soon to be first time buyers, are watching very closely.

But has the general election impacted houses so far and will it cause any significant changes once the election has taken place?

Has the general election affected house prices so far?

Several years ago, house prices were increasing rapidly which was great news for current owners but not so much for those looking to step onto the housing ladder.

In 2023 and 2024, prices have really slowed. Many industry bodies have suggested that prices are still rising but nothing like they have been doing. We reported in June that house prices had risen 0.4 per cent just in time for summer. And in the last 4 weeks, house prices have risen again by 0.1 per cent, exceeding expert predictions.

But is the election the root cause? The team at Benwell Daykin estate agents don’t necessarily think so.

There is talk soon of interest rates lowering and that positive news could be restoring further confidence in the market.

Will the election alter house prices after July 4th?

What about after the election?

If the polls are correct, it looks like we’re soon to have a new government in place and yes, this could put some energy into the market.

Looking at historic data, however, the team at Benwell Daykin aren’t expecting much to change.

Nationwide have too done some research and they have concluded that after the past general elections there hasn’t been any real volatility in the market. Big price movements tend to come with other economic trends.

Nationwide also extended their research to mortgage approvals and again, there was no significant change in the amount of mortgage applications and approvals during and immediately after an election period.

Having said this, other research conducted by Compare my Move did conclude that house prices roses by an average of 4.6 per cent following a general election.

What can we conclude?

By using our knowledge and the above research we conclude that there won’t really be a significant impact on house prices when it comes to the election.

There may be small changes but on the whole, we’re not going to see a huge amount of volatility.

Bigger things to watch out for which may alter house prices significantly would be a change in inflation or a large drop (or increase) in interest rates once again.

What do you think yourself? Let us know your thoughts.

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