What to expect from UK house prices in 2026

Property experts expect a more positive year for first-time buyers in 2026, as well as a slight rise in average asking price.

This is according to online property platform Rightmove, which has released its predictions for the UK’s 2026 housing market.

Rightmove predicts that average new seller asking prices will grow by 2% by the end of next year, although this will differ greatly by region, as seen in this year’s house price data.

Lower-priced regions such as Scotland, northern England, and Wales are expected to see stronger growth at 3%, whilst house prices in London will likely lag behind with an expected growth of just 1%.

Rightmove attributes slower expected price growth in London in part to the government’s upcoming implementation of a ‘mansion tax’ on high-value homes, which will disproportionately affect the capital.

Further rate cuts are expected next year, which should help mortgage rates reduce and make loans more approachable for buyers. The government is also hiking income tax on rental income for landlords by 2%, which comes into effect in 2027 but could affect the rental market and buyers in the year ahead.

Wage growth is expected to outpace property prices in 2026, which will help improve affordability for buyers across the country.

This is particularly good news for first-time buyers, many of whom who have not benefited from house price appreciation and have found purchasing a home increasingly out of reach.

Rightmove expects that 2026 will be a buyers’ market, with first-time buyers facing a good choice of homes and having more negotiating power. It said that those moving home at the very top end of the market will struggle most over the coming years, thanks to the incoming mansion tax.

“I think next year will be a mix of some key property market themes continuing, and other new trends emerging,” said Rightmove property expert Colleen Babcock.

“We expect many of those who put their moving plans on hold over the last few months will pick them back up again from Boxing Day and into the new year, now the Budget is out the way.”

“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,” she said.

“I also think the market conditions next year will favour typical first-time buyers over those at the top-end of the market.”