Top property market predictions for 2026, according to industry leaders. Discover the best opportunities for homeowners, investors and landlords alike
Published on 17th December 2025
As the year draws to a close, many are reflecting on the past and preparing for what 2026 may bring to the property market. After several years marked by rising interest rates, inflationary pressures, and shifting buyer behaviour, anticipation for what comes next is high.
We have reviewed the key property market predictions for 2026, along with the most effective strategies for homeowners, investors, and landlords alike.
The outlook for 2026 is optimistic, with property analysts broadly agreeing that England’s housing market is positioned for moderate yet consistent growth. Knight Frank, Halifax and Nationwide speculate confidence returning across all major indices.
Economic outlook
There is growing expectation that the Bank of England will introduce gradual interest rate cuts in 2026, a shift that could significantly improve mortgage affordability, and a key consideration for investors with leveraged portfolios.
According to analysts cited by City Rise, average two-year fixed mortgage rates are forecasted to fall below 4%. This would not only support stronger returns for investors purchasing new properties but also reduce monthly repayments for those looking to refinance.
House prices
City Rise notes that, should current forecasts play out, the average UK house price, now around £280,000, could surpass £300,000 by the end of 2026. Both the Nationwide and Halifax house price indices also reflect strengthening conditions. After a slight dip in early 2025, prices have begun to stabilise, with a strong finish anticipated for 2026.
When considering whether prices will continue to rise, the expert consensus remains positive. However, analysts emphasise that any growth is likely to be gradual and sustainable rather than marked by sharp increases. Savills supports slow recovery between 2027 and 2030, expecting prices to grow by 22% on average over the next five years with Northern England, Wales and Scotland to show the biggest rates.
Dan Hill, research analyst at Savills, said: “In the absence of any whole market price correction, this pattern is likely to persist for the next five years, with the strongest growth shifting to late-stage markets in the Northeast, Scotland & Wales.”
While the market is expected to remain price-sensitive, analysts suggest that the worst of the correction is now behind us.