Property market set to gain pace in 2026. Next year’s forecasted growth offers a welcome turning point
Published on 25th November 2025
According to Mortgage Soup, leading economists and property analysts predict national house price gains of 4-5% after growth slowed to around 2.5% this year.
House prices jumped nearly 5% year-on-year in early 2025 as buyers rushed to beat upcoming Stamp Duty Land Tax changes. Analysts say the upward momentum is set to continue into the New Year, with Northern England, Scotland, and Wales leading the recovery, and London and the South following suit, reports Property Wire.
Although recent growth has been modest, the average property price of £270,000 remains at record highs - £8,000 more than a year ago. If forecasts are accurate, the average UK home could reach £300,000 by late 2026.
Estate agents broadly support a 4% increase, while Savills’ long-term data suggests cumulative gains of 21.6% by 2029. According to MoneyWeek, Savills now projects a 1% rise in the mainstream housing market. Meanwhile, Knight Frank’s outlook is slightly more reserved but still anticipates growth to accelerate from 2026 onwards, forecasting increases of 3% in 2026, 4% in 2027, 4.5% in 2028, and 5% in 2029.
Jason Harris-Cohen, managing director of LandlordBuyer, said: “After several challenging years, the forecasted rebound offers a welcome turning point.”
Market outlook
Property Wire explains that lending conditions only partly explain the market outlook. Broader structural shifts, such as e-commerce reshaping retail and leisure use, are redefining property values and vacancy patterns across the UK.
Stronger demand and improved lending are driving steady growth in housing, while the commercial sector adapts to digital-first habits that lessen the need for physical spaces. This creates a mixed outlook - resilience in housing but pressure on retail and leisure.
Investor confidence
Investor confidence is gradually returning, with potential early signs of an upswing in investment activity, according to RICS. Rental and capital value forecast for 2026 remain modest but positive, with retail remaining a slow journey to recovery, and industrial property expected to lead the shift.
In the residential market, regional hotspots are drawing buy-to-let investors and overseas buyers, especially where yields and capital growth potentially outpace London. Analysts forecast around 20% long-term growth across the UK, with significant variation between regions.
Time to sell?
The property market is undeniably on the move, and 2026 could bring new opportunities for buyers and investors alike.
Whether you’re looking to sell, a first-time buyer, an investor, or looking to expand your property portfolio, Gateway can support you. Existing Gateway customers benefit from incredible discounts when selling or renting their property, as well as special offers on our in-house conveyancing and mortgage advice services!
Gateway Customer Discounts
Estate Agency
| Standard Cost | Gateway Customers |
|---|---|
| 1.5% of the selling price | 1% of the selling price Sole or multi agency |
Lettings Management
| Standard Cost | Gateway Customers |
|---|---|
| 10% of the monthly rent | 8% of the monthly rent |
Conveyancing (Sales)
| Standard Cost | Gateway Customers |
|---|---|
| starting at £925.00 + VAT* | starting at £750.00 + VAT* |
Mortgage Advice
| Standard Cost | Gateway Customers |
|---|---|
| previously £295.00 incl. VAT | FREE |
*Terms and conditions apply.
Offers available until 1st April 2026.
All you need to do is get in touch with us to claim these amazing rewards. You can call us on 01702 443 546, email contact@gatewayresidential.co.uk or use the contact form on our website at gatewayresidential.co.uk.
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