The UK housing market is expected to find firmer footing in 2026, with activity gradually gathering pace and house prices forecast to see modest growth. Improving affordability, coupled with greater clarity following the Chancellor’s recent Budget, is encouraging both buyers and sellers to revisit plans that may have been paused over the past year.
Property Type and Location
As ever, however, the experience of the market will vary considerably depending on location and property type. More affordable markets are likely to see the strongest levels of movement, while higher-value areas may feel a degree of restraint as buyers digest the implications of the Budget and consider longer-term tax changes.
First-Time Buyers
First-time buyers may find conditions increasingly favourable in 2026. A wider choice of homes for sale, steady wage growth outpacing house price inflation, and the prospect of lower mortgage rates could help more buyers take their first step onto the property ladder. At the upper end of the market, meanwhile, the proposed introduction of a mansion tax in 2028 may temper activity in the year ahead as some buyers adopt a more cautious approach.
