Welcome News for the UK Housing Market

The UK housing market is expected to move onto firmer ground in 2026, with activity gradually improving and house prices forecast to see steady, modest growth. With the Budget now behind us and greater clarity around tax policy, many buyers and sellers are beginning to revisit plans that may have been delayed over the past year.

As always, market conditions will vary depending on location and price bracket. In more affordable areas, we expect to see stronger levels of activity as improving mortgage rates and better affordability encourage buyers back into the market. Higher-value markets may see a slightly more measured pace as purchasers take time to consider the longer-term implications of recent and proposed tax changes.

Welcome Opportunities for First-Time Buyers

For first-time buyers, 2026 could offer a welcome opportunity. A wider choice of homes coming to the market, alongside wage growth that is starting to outpace house price inflation and the likelihood of lower mortgage rates, may help more buyers take their first step onto the property ladder. At the very top end of the market, however, the proposed introduction of a mansion tax from 2028 may encourage some buyers to adopt a more cautious approach in the year ahead.