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UK house prices are expected to edge higher in 2026, with forecasts suggesting growth of 2% to 4%. Lower interest rates and easing lending rules are set to drive the increase.
Experts believe market activity will pick up gradually rather than surge, reflecting a cautious but improving economic environment.
A 4% rise would push the average home value to nearly £284,000, highlighting the continued resilience of the property market.
Mortgage rates have already been trending downward, offering buyers better deals compared to earlier in the year.
Regulators are also planning reforms to allow more flexible mortgages, particularly benefiting first-time buyers and those with irregular incomes.