House prices across the UK could rise steadily in 2026, supported by lower interest rates and regulatory reforms designed to improve access to mortgages. Forecasts indicate price growth of between 2% and 4%.
Market activity is expected to strengthen as affordability improves. Wages have been rising faster than house prices, helping to offset the impact of higher borrowing costs seen in previous years.
A projected 4% increase would lift the average home price to nearly £284,000. While this represents growth, analysts note it remains below the rapid increases seen earlier in the decade.
Mortgage rates have been falling across the board, with both two-year and five-year fixed deals becoming cheaper. This has encouraged buyers to re-enter the market.
Regulators are also consulting on more flexible mortgage products, aiming to better support first-time buyers and people with non-traditional income patterns.