After many buyers and sellers put their plans on hold in the run up to last year’s Budget, those needing to move or remortgage in 2026 will be hoping for a period of calm ahead.
Most of the biggest lenders and property websites suggest that we’re likely to see a steady, modestly rising property market in 2026, with house prices likely to drift gradually up rather than see any sudden jump. Buyer activity is expected to be supported by better affordability and stable mortgage conditions, with markets anticipating at least one if not two further rate reductions this year.
Here’s our round up of some of the main predictions for the property market in 2026.
Halifax
Halifax expects modest house price growth of between 1% and 3% in 2026, despite its latest house price index showing a 0.6% fall in property prices in December. Amanda Bryden, head of mortgages at Halifax said: “Various forces are poised to somewhat buoy the market heading into 2026. While December’s monthly fall in prices was likely related to uncertainty in the latter part of the year, this should now be starting to unwind.”
However, the bank noted that headwinds such as slowing wage inflation and easing employment rates could affect buying power and therefore expects house prices to take a slow but steady course.
Nationwide
The building society also predicts positive but restrained price rises in 2026, suggesting house prices will grow between 2% and 4%. It highlights that easing affordability pressures, such as slightly lower borrowing costs and wage growth, should help underpin buyer demand, and that measures announced in the Budget are unlikely to drag prices down.
Robert Gardner, Nationwide’s chief economist, said: “The changes to property taxes announced in the Budget are unlikely to have a significant impact on the market. The high value council tax surcharge is not being introduced until April 2028 and will apply to less than 1% of properties in England and around 3% in London.”
Rightmove
Property website Rightmove expects to see particularly strong regional variations in house prices this year, with Scotland, Wales and northern England forecast to perform more strongly than southern regions. Across the UK, the site predicts new seller asking prices will rise by 2% in 2026.
Colleen Babcock, Rightmove’s property expert, said: “We predict the market will look and feel very different depending on which area of Great Britain you’re in, and the type of property you’re looking to sell or buy, with big differences particularly between the south of England and the rest of Great Britain. I also think the market conditions next year will favour typical first-time buyers over those at the top-end of the market.”
Zoopla
Zoopla predicts average UK house prices will increase by 1.5% over 2026, and like Rightmove, expects the north-south divide in house price growth to remain. Improvements in mortgage availability and affordability are particularly helping to drive first-time buyer activity, Zoopla said.
Richard Donnell, executive director at Zoopla, said: “It is important that sellers remain realistic on pricing to secure sales in 2026, especially across southern England. Homeowners looking to move in the year ahead should understand the value of their home and what they can afford before starting their property search.”
