According to recent forecasts, UK house prices are set to continue growing through 2026, with many analysts expecting increases averaging between 2% and 4%. This projection reflects easing mortgage costs and improved affordability — two key catalysts for renewed home buyer activity.
Data from Nationwide, Halifax and other forecasters point to resilient demand and a market that is adjusting to the economic landscape — one where lending conditions are gradually easing and buyers are starting to step forward again.
So how does this projected price rise translate into rising market activity? There are a few reasons:
1. Buyers See Value and Affordability Improves
When interest rates begin to reduce, monthly mortgage payments become more affordable. This means two key things:
With buyers feeling more confident, enquiries rise. Properties that may have lingered on the market start attracting offers and competition returns, helping to coax prices upward.
2. Sellers Respond to Positive Price Signals
Price growth in property isn’t just a number; it’s also cause and effect.
When homeowners see indications that their property’s equity is strengthening, they are more likely to:
This increase in listings helps kick-start the supply side of the market, balancing demand and providing buyers with options, leading to fresh interest and more transactions.
3. A Balanced, Healthy Market Encourages Transactions
Forecasts are not suggesting explosive growth — they’re pointing to steady, sustainable gains. That’s key.
Rapid, unpredictable spikes could stall buyer confidence. However, steady growth, grounded in improving affordability and stable lending conditions, encourages both buyers and sellers to take action.
This kind of environment is precisely what generates more real transactions, of the kind that benefit everyone from first-time buyers to downsizers and investors alike.
As estate agents with deep roots in our community, we see the market not just in numbers but in real buyer interest and activity. Here’s what this predicted rise means practically for people thinking about selling:
In other words, this isn’t just about a small uptick in house prices — it’s about a healthy, evolving market where both buyers and sellers have the courage to take the next step.
Whilst the property market can still be influenced by economic policy, buyer sentiment and wider financial conditions, right now, the signals are encouraging:
For home sellers, this is an opportunity worth getting ready for.
If you’d like to explore what these forecasts mean specifically for your neighbourhood or property type, the teams at Mackenzie Smith are here to help with tailored insights and personalised market strategies.
Get in touch — the 2026 market is shaping up to be one where well-timed moves really count.
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