Source: Rightmove
According to new data from Rightmove, the UK housing market is expected to see modest but positive growth in 2026, with new seller asking prices forecast to rise by around 2% nationally by the end of the year. While the market continues to rebalance following recent economic uncertainty, improving affordability and easing mortgage rates are expected to encourage more buyers and sellers to make their move.
House price growth is predicted to vary significantly by region. Scotland, Wales and northern England are expected to outperform the national average, driven by stronger affordability and a healthier balance between supply and demand. In contrast, London and parts of southern England may see slower growth, partly due to higher property values and the longer-term impact of recent and upcoming tax changes.
Rightmove reports that buyer affordability should continue to improve throughout 2026. Average wage growth is expected to outpace house price increases, while lenders are gradually relaxing affordability criteria. Mortgage rates are also expected to edge lower following further anticipated Base Rate cuts, helping to make monthly repayments more manageable.
The report also highlights renewed buyer confidence following the Autumn Budget. Rightmove’s research shows that many movers who paused plans due to uncertainty are now returning to the market, with activity expected to pick up from late December and into the new year.
For first-time buyers, 2026 could present improved opportunities. A wider choice of homes, stronger negotiating power and better affordability conditions mean many may find it easier to step onto the property ladder, although higher deposit requirements and mortgage costs compared to pre-2020 levels remain a challenge.
At the top end of the market, activity is expected to be more subdued. The introduction of a mansion tax from 2028 is likely to impact buyer and seller behaviour in advance, particularly in London and the South East, although this affects only a small percentage of UK homes.
Commenting on the outlook, Colleen Babcock, property expert at Rightmove, noted that 2026 will feel very different depending on location and price bracket, with conditions favouring first-time buyers more than high-value home movers.
Overall, Rightmove concludes that while price growth will be steady rather than dramatic, 2026 could be a positive year to move, particularly for those in more affordable regions and for buyers and sellers who price and plan realistically from the outset.
