3
The UK housing market is expected to see modest price growth in 2026, with projections pointing to increases of up to 4%.
Lower interest rates are anticipated to play a major role, helping to reduce monthly mortgage payments for new and existing borrowers.
The average house price currently sits at £272,998, and a moderate rise would continue the trend of steady appreciation.
Mortgage lenders have eased affordability tests, allowing borrowers to access slightly larger loans.
Alongside regulatory reforms, these changes could encourage more buyers to enter the market next year.