UK Housing Market Expected to Steady in 2026

The UK housing market is expected to move into a more stable phase in 2026, with activity gradually picking up and house prices forecast to see modest growth. With the Budget now behind us and affordability beginning to improve, many buyers and sellers are regaining the confidence to move forward with plans that may have been on hold.

As ever, the pace of the market will vary depending on location and price bracket. More affordable areas are likely to see stronger levels of activity as buyers respond to improving mortgage conditions, while higher-value markets may take a little longer to build momentum as purchasers consider the longer-term impact of recent tax changes.

Positive Opportunities for First Time Buyers

For first-time buyers, 2026 could present some positive opportunities. A wider choice of homes coming to the market, combined with wage growth beginning to outpace house price inflation and the prospect of lower mortgage rates, may help more buyers step onto the property ladder. At the very top end of the market, however, the proposed introduction of a mansion tax in 2028 may encourage a more cautious approach among some buyers in the year ahead.

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