House Price Growth in the UK So Far in 2026

According to the latest Land Registry data released in March 2026, house price growth slowed slightly at the start of the year. Annual growth reduced from 1.9% in December 2025 to 1.3% in January 2026, while prices saw a small monthly decrease of 0.3%. This brings the average UK house price to £268,421 as of January 2026.

Across the UK, regional variations remain evident. Northern Ireland recorded the strongest house price growth during 2025, according to major lenders and property portals. In comparison, England and Scotland experienced more modest increases, with average prices rising by 1.1% and 1.3% respectively, bringing values to around £290,000 in England and £188,000 in Scotland.

Looking Ahead in 2026

Looking ahead, most lenders and estate agents expect house prices to continue to rise gradually throughout 2026. However, it is worth noting that many of these forecasts were made before recent developments in the Middle East, which could have an impact on wider economic conditions and market confidence.

The proposed mansion tax on properties valued above £2 million, announced in the 2025 Autumn Budget and due to come into effect in 2028, is not expected to have a significant impact on the overall market. As it is likely to affect only around 1% of properties, however, its influence is limited, particularly in areas outside of the prime central London market.