After several years of uncertainty, the UK housing market enters 2026 with something it hasn’t enjoyed for a while: a clearer path forward.
Inflation is easing, mortgage rates are gradually softening, and the post-Budget landscape has restored confidence for buyers and sellers who spent much of 2025 waiting for stability.
This year won’t be defined by dramatic swings. Instead, it’s set to bring steady, sustainable movement. For anyone planning to buy, sell or remortgage, 2026 offers the chance to plan proactively rather than reactively.
House Prices: Steadying and Becoming More Predictable
According to the latest figures from Zoopla, the average UK home is now valued at £270,200, with prices growing 1.3% over the past year. It’s not eye-catching growth, but after the volatility of recent years, this measured rise signals a market recalibrating rather than overheating.
Regional Shifts Worth Noting
- Southern England has seen slight price declines for the first time in 18 months, softening the market in areas that have historically been difficult for first-time buyers and movers.
- The North West, Wales, Scotland and the northern regions have seen stronger momentum, with rises of 2–3%, underpinned by better affordability and growing local economies.
Positively, the UK market is becoming more regionally diverse. As affordability spreads and regeneration continues, more buyers can look beyond traditional “hotspots”.
What Forecasts Tell Us About the Years Ahead
Savills’ latest forecasts suggest the next five years will bring steady growth, with approximately 22.2% cumulative price increases by 2030. Their projections show:
- +2% in 2026
- +4% in 2027
- +5% in 2028
- +5.5% in 2029
- +4% in 2030
Crucially, the strongest long-term growth is expected across the Midlands and the North, where affordability remains more supportive and major investment projects are reshaping local demand.
London and the South East, meanwhile, are on course for more modest rises as their markets adjust to slower demand.
Regional House Price Forecasts, 2026-2030
| 2026 | 2027 | 2028 | 2029 | 2030 | 5 years to 2030 | |
|---|---|---|---|---|---|---|
| UK | 2.0% | 4.0% | 5.0% | 5.5% | 4.0% | 22.2% |
| Yorkshire and The Humber | 3.5% | 5.5% | 6.0% | 6.0% | 5.0% | 28.8% |
| North East | 3.5% | 5.5% | 6.0% | 6.0% | 5.0% | 28.8% |
| Scotland | 3.0% | 5.0% | 6.0% | 6.0% | 5.0% | 27.6% |
| Wales | 3.0% | 5.0% | 6.0% | 6.0% | 5.0% | 27.6% |
| North West | 3.0% | 5.5% | 6.0% | 6.0% | 4.5% | 26.6% |
| West Midlands | 2.5% | 4.5% | 5.5% | 6.0% | 4.0% | 24.6% |
| East Midlands | 2.5% | 4.0% | 5.5% | 6.0% | 4.0% | 24.0% |
| South West | 2.0% | 4.0% | 5.0% | 5.0% | 3.5% | 21.0% |
| East of England | 1.5% | 3.5% | 4.5% | 5.0% | 3.5% | 19.3% |
| South East | 1.0% | 3.0% | 4.0% | 4.5% | 3.5% | 17.0% |
| London | 0.0% | 2.0% | 3.5% | 4.5% | 3.0% | 13.6% |
Mortgage Rates: A More Predictable Landscape
The Bank of England ended 2025 by reducing the Base Rate to 3.75%. Lenders had already anticipated the move, but the decision marked a turning point: we’re now past the period of aggressive rate rises and firmly in a phase of stability.
We expect mortgage rates to gradually settle into the mid3% to 4% range as we move through 2026. While not a rapid decline, this smoother environment brings two crucial advantages:
- Borrowers can plan with more certainty
- Lenders have the confidence to price more competitively
It’s a market where informed decisions, rather than hurried ones, are once again possible.
If you’d like to explore what current rates mean for you, try our mortgage calculator >>
Market Activity: Confidence Is Quietly Building
A survey of UK homebuyers revealed that 73% delayed their search until after the Budget. Yet, almost immediately afterwards, 98% said they were ready to re-enter the market.
This shift tells us something important: the appetite to move never went away; people were waiting for clarity.
With economic direction now clearer and mortgage pricing more stable, we anticipate a steady rise in listings and buyer activity throughout early 2026.
What All This Means for You
If you’re remortgaging
2026 could be a favourable year to lock in a new rate. Many lenders allow you to secure a deal up to six months early, with the option to switch to a better rate if one becomes available.
This gives you:
- Protection if rates rise
- Flexibility if they fall
If you’re buying
Expect more choice, steady prices, and a less frantic environment compared to the post-pandemic years. It’s a market that rewards preparation rather than rushed decision-making.
If you’re selling
Demand is recovering, particularly for well-presented homes in desirable areas. Pricing realistically will help ensure your property stands out in a market where buyers are becoming more discerning.
2026 Is the Year to Move with Confidence
With stability returning, buyers and homeowners can once again make long-term decisions with confidence.
And that’s where expert advice truly matters. Not just in finding a competitive mortgage, but in shaping a strategy tailored to the realities of today’s market and the opportunities ahead.
Speak to an expert
If you’re ready to explore your options, our team of expert mortgage brokers are here to help. To get started, call our experts on 0345 345 6788 or submit an enquiry here to see how we can help.
