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UK Housing Market Predictions 2026

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.

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