A new year often sparks new plans, ideas, goals and for many people, that includes looking to buy a home, moving up the property ladder or reviewing their current mortgage deal. As we move through 2026, the big question remains…what’s next for the UK property market and house prices in 2026?
A new year often sparks new plans, ideas, goals and for many people, that includes looking to buy a home, moving up the property ladder or reviewing their current mortgage deal. As we move through 2026, the big question remains…what’s next for the UK property market and house prices in 2026?
The latest five-year property market outlook from Savills offers a useful insight into where house prices, buyer demand and mortgage affordability may be heading between now and 2030.
House Prices in 2026
According to Savills, the growth of house prices is expected to remain modest in the short term, with prices forecast to rise by 2% in 2026. This slower pace reflects the on-going economic uncertainty, affordability pressure sand cautious buyer sentiment.
Looking ahead, the longer-term outlook is more encouraging. As interest rates and mortgage costs are expected to ease, confidence is expected to return to the housing market.
Savills Forecasts:
- 4% annual growth in 2027
- 5% growth in 2028
- 5.5% growth in 2029
Over the five-year period, property values are expected to increase by 22.2% overall, adding significant value for homeowners and investors alike.
Regional Property Market Outlook
The report indicates that house price growth is not expected to be evenly spread across the UK and regional differences will continue to play a major role.
Savills predicts the strongest growth between now and 2030 in:
• North East - up 28.8%
• Yorkshire & the Humber - up 28.8%
Meanwhile, affordability constraints are likely to limit growth in higher-priced regions, including:
• London - forecast growth of 13.6%
• South East - forecast growth of 17.0%
Improving conditions for First Time Buyers
Savills highlights that first-time buyers (FTBs) have been one of the driving forces of the housing market over the past year, showing greater confidence despite higher borrowing costs. In recent years, it has been notoriously difficult to get onto the property ladder, so it is promising to see that FTB’s might be growing in confidence.
In fact, new homeowners are the only buyer group to record activity above pre-pandemic levels. Interestingly, they are also the most active group in London, despite it being the most expensive place to buy in the UK.
Challenges & Opportunities for Home Movers
For those looking to move on from their first home, conditions have been more challenging. Flat price growth in some areas has limited the equity available to ‘second steppers’, making it harder to fund a larger purchase. As a result, many movers are relying more heavily on their original deposit rather than price growth and overall home-moving activity remains below pre-pandemic levels.
That said, improving mortgage affordability and stronger house price growth are expected to encourage more movers back into the market as interest rates fall.
How Can We Help?
Navigating the property market can feel complex, particularly when interest rates, affordability and regional trends are all shifting. As experienced mortgage brokers, we’re here to help you make sense of your options - whether you’re a first-time buyer, moving home or remortgaging.
With the right advice, you can turn your property dreams into a reality.
Get in touch today to speak to one of our friendly mortgage advisers.
Sources:
https://www.savills.co.uk/research_articles/229130/382244-0
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