It’s been a challenging period for the UK property market, with higher interest rates, affordability pressures and fluctuating prices affecting both buyers and sellers. However, as we move into 2026, there are signs that the market is beginning to stabilise. Here, we take a closer look at house prices in Nottingham and what the latest data suggests for the months ahead.
House prices at the start of 2026
According to the Hometrack UK House Price Index (January 2026), house prices across the UK increased modestly over the past year. Annual price growth now sits at just over 1 per cent nationally, showing a more balanced market after the volatility seen in previous years.
Buyer confidence has started to improve following a slowdown in late 2025, helped by falling mortgage rates and a gradual recovery in demand. At the same time, more homes are coming to market, giving buyers greater choice and keeping price growth under control.
Nottingham house prices
Looking specifically at Nottingham, the city has continued to perform relatively well compared to many other parts of the country. Average house prices in Nottingham are now around £203,000, with annual growth of approximately 2 per cent, according to Hometrack-aligned data.
This places Nottingham above the national average for price growth, despite remaining significantly more affordable than many southern cities. While some areas have seen prices stagnate or fall slightly, Nottingham has experienced steady, consistent growth, supported by strong rental demand, a large student population and ongoing investment across the city.
Interestingly, the wider East Midlands has seen much weaker growth overall, with prices broadly flat year on year. This highlights Nottingham’s resilience compared with the surrounding region.
Why is Nottingham holding up well?
House prices tend to rise where demand remains strong, and Nottingham continues to attract both buyers and investors. Improved affordability compared to cities like London and Birmingham, combined with better mortgage availability than a year ago, has encouraged activity in the local market.
Lower mortgage rates have also helped first-time buyers and home movers re-enter the market, even though affordability remains a challenge for many. While price growth is modest, it is far more sustainable than the sharp rises seen in previous years.
Our outlook for the Nottingham property market
Looking ahead, we expect the Nottingham housing market to remain stable through 2026, with slow but steady price growth rather than sharp increases. Traditionally, the early part of the year is quieter, but activity is likely to pick up into spring if interest rates continue to ease.
Further reductions in borrowing costs would help boost confidence and support demand, particularly among first-time buyers and upsizers. Overall, Nottingham is well placed to continue outperforming many UK cities due to its affordability and strong underlying demand.
How much is your house worth?
Have you wondered how much your Nottingham property is worth in today’s market? Or how much it has changed in value over recent years?
Contact Benwell Daykin estate agents Nottingham for a free, no-obligation property valuation, or get in touch to discuss the local market in more detail. You can call us on 0115 9902007.