Growth for House Prices in 2026?

Developer Money Market looks back at how UK house prices performed in 2025 and what the main forecasters expect for 2026.

The market ended 2025 on a softer note as it adjusted to higher borrowing costs, tax changes and a cooling economy. Nationwide recorded annual growth of just 0.6% in December, down from 1.8% in November and the weakest since April 2024. Halifax reported a 0.6% monthly fall in December, taking the average home to £297,755, its lowest since June 2025, with annual growth easing to 0.3%.

Regional differences remained pronounced. Northern Ireland led with 7.5% annual growth and Scotland followed at 3.9%, while London prices fell 1.3% year on year. The official UK House Price Index put the average price at £269,862 in October 2025, up 1.7% annually but 0.1% lower on the month.

For the first quarter of 2026, forecasts point to modest rather than dramatic growth. Zoopla expects buyers to return strongly after the Autumn Budget and the seasonal lull, though affordability will limit price rises. Rightmove predicts new seller asking prices will rise by about 2% over the year, with cheaper areas such as Scotland, Wales and northern England outperforming the south.

Easing inflation and possible interest rate cuts are expected to improve mortgage affordability and steady demand. No major index has published a specific Q1 price forecast, but the consensus is for slight gains. Overall, the article concludes that the market enters 2026 cooler and more predictable than in recent years, with gentle growth that will vary by region.

Source: Developer Money Market, original article (13 February 2026)