2026 UK Property Market Forecast

🏠 2026 UK Property Market Forecast

Industry forecasters are increasingly aligned on a steady, balanced housing market in 2026, with modest house price growth, improving affordability and stronger buyer activity expected through the year.

Nationwide Building Society projects annual UK house price increases broadly in the 2–4% range in 2026, supported by falling mortgage rates and better purchasing power compared to recent years.

Rightmove and other forecasters also expect around 2% national growth in 2026, with variations across regions due to affordability and local supply/demand dynamics.

Halifax and other lenders forecast modest price rises of about 1–3% next year, reflecting a cautious but improving market backdrop with lower interest rates, moderate earnings growth and better mortgage access.

📈 What 2026 Could Feel Like

• A “bottom-up” market: Savills and other industry analysts highlight that market growth is likely to be stronger in more affordable regions, with slower momentum in high-cost areas.
• Improved affordability: Falling mortgage costs and steady income growth should help first-time buyers and movers compete more effectively, boosting activity.
• Activity picking up: After a subdued end to 2025, many regions are expected to see more robust transaction volumes as clarity returns around borrowing costs and policy setting.

📊 Regional Heat Map – House Price Growth in 2026

Based on multiple forecasts (Savills/Rightmove/Nationwide projections and broader market analysis):

💡 Summary: Northern, Midland, Scottish and Welsh markets are generally expected to outperform southern England and London in 2026, driven by affordability, stronger buyer demand and lower entry prices.

(These figures are indicative projections — actual outcomes will depend on economic conditions, interest rates and local supply.)

📍 Spotlight: Derby – A Midlands Market to Watch

Derby, positioned in the East Midlands, benefits from a combination of relative value, good transport links (including East Midlands Airport and road infrastructure) and regional economic growth drivers. According to regional property commentary, the Midlands overall is earmarked as one of the more attractive value-driven expansion areas heading into 2026, with Derby often mentioned due to its manufacturing base and access to employment hubs.

While exact official forecasts for Derby specifically in 2026 are limited, broader projections for the East Midlands point to price growth in the 3–4% range, in line with other strong performing regions outside the South East.

Investors and buyers focused on Derby may see steadier growth than London or the South East, without the excessive pricing pressure of larger southern markets — making it a region often highlighted for balance between affordability and upside.

📌 Summary – 2026 in Three Lines

📍 House prices are expected to rise modestly across the UK in 2026, with forecasts typically around 2–3% nationally, supported by lower mortgage costs and easing affordability pressure.

📍 Regional variation will be significant — stronger growth is anticipated in Scotland, the North and Midlands, with London and parts of the South lagging.

📍 Derby and the wider East Midlands could outperform the UK average, offering better value and steady gains for buyers and investors.

✨ Of course, as we’ve seen over the last few years, the property market and indeed the economy as a whole can shift dramatically, but the hope and expectation is of a steadier start to 2026. We’ll be sure to keep you up to date with local market conditions throughout the coming weeks and if you would like tailored advice about buying, selling or investing locally, get in touch with your nearest Hannells branch or arrange a free, no-obligation property valuation today.

Click HERE to book your free, no-obligation valuation.

Get in touch with your local branch of Hannells by clicking HERE

To catch all of our latest content, make sure you subscribe to our social media channels below!

Facebook: Facebook.com/Hannells

Instagram: Instagram/HannellsEstateAgents

Youtube: Hannells on Youtube

LinkedIn: linkedin.com/company/hannells-estate-agents

Hannells – A Moving Experience…