After a period of adjustment for the UK housing market, there is evidence that a steadier phase is beginning. According to the latest forecasts from Rightmove, national house prices are expected to rise by approximately 2% throughout 2026 [1].
This predicted growth follows a relatively flat 2025, where average prices actually saw a slight dip of around 0.6% [2]. While we aren’t seeing a return to the rapid price jumps of previous years, the current outlook suggests a market that is finding its feet and moving toward a more sustainable level of growth.
What the Experts are Predicting
The Rightmove House Price Index tracks millions of property listings across the UK, providing a clear picture of what sellers are asking for when their homes first come to market.
Their research indicates that average new seller asking prices could increase by 2% by the end of 2026 [1]. This trend is supported by a significant rebound in activity, as many buyers who paused their plans during the uncertainty of late 2025 return to the market. In fact, January 2026 saw the largest monthly increase in asking prices in a decade, with almost £10,000 added to the average property price in just five weeks [3].
A Tale of Different Regions
It is important to remember that the UK doesn’t have one single housing market; it is made up of thousands of local ones. Rightmove and Zoopla both highlight that house price movements in 2026 are unlikely to be the same across every region [4]:
- Stronger Growth:More affordable regions such as Scotland, Wales, and Northern England are expected to see more resilient price growth, potentially reaching between 3% and 4% [4].
- Steady or Slower Growth:Higher-priced areas like London and the South East may see slower movement (around 1%) as buyers there continue to manage higher affordability pressures [4].
For homeowners, this means that your local postcode remains a much more important factor than any national headline.
Why Are Prices Edging Up?
Several factors are coming together to support this modest growth:
- Improving Affordability:Average wage growth is currently outstripping house price increases, meaning homes are becoming more affordable in real terms for many [1].
- Mortgage Rate Stability:As we move through 2026, many major lenders have introduced more competitive rates, particularly on two-year fixed products [3].
- Decade-High Choice:There is currently a very healthy number of homes for sale, giving buyers more options and helping the market remain active [3].
What This Means for You
For most homeowners, a 2% rise isn’t a dramatic shift, but it could provide reassurance that property values are holding steady.
If you are planning to move, this balanced market could be beneficial. It is a period where buyers have more choice and potentially more negotiating power, while sellers can feel more confident that they could achieve a realistic price if their home is presented well.
It is worth keeping in mind that these figures refer to asking prices, and final sale prices could differ. Forecasts are a helpful guide for planning, but they are not a guarantee of future performance.
The Bottom Line
The housing market in 2026 is showing signs of a modest recovery. It isn’t surging uncontrollably, but it also isn’t stalling. For homeowners and movers alike, this environment rewards careful planning over trying to time the market perfectly.
At Yes Mortgage Services Limited, we have access to a comprehensive panel of lenders and could help you understand how these market changes might affect your personal borrowing options or your plans for a new home.
Would you like a current update on what your property might be worth or to discuss your mortgage options for a potential move?
Sources and Disclaimers
References: [1] Rightmove (2026). 2026 UK House Price Predictions & Forecast
[2] Rightmove (2025). December 2025 Housing Market Update
[3] Rightmove (2026). January 2026 House Price Index: Record January price rise
[4] Zoopla (2026). 2026 house price growth: How does your postcode stack up?
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