House prices are expected to rise modestly in 2026, with asking prices forecast to increase by 2% as improving affordability and a strong choice of homes for sale support market activity, according to the latest outlook from Rightmove.
The UK’s largest property platform says its forecast is based on data covering more than 90% of the housing market, drawing on millions of pricing, supply and demand data points alongside analysis from its in-house experts.
Rightmove expects the coming year to mark a recovery from an unexpectedly weak 2025, when new seller asking prices fell by 0.6%.
The company described last year as a “tale of two halves”, with an encouraging start giving way to a slower second half as Budget-related uncertainty weighed on confidence.
IMPROVED AFFORDABILITY
Looking ahead, Rightmove says market conditions in 2026 are likely to resemble the latter part of 2025 rather than the earlier rebound, with affordability gradually improving and buyer choice remaining high.
Together, these factors are expected to drive moderate price growth rather than a sharp rebound.
Regional performance is forecast to vary significantly. While average prices across Great Britain are predicted to rise by 2%, London is expected to lag with growth of around 1%.
Stronger increases of about 3% are forecast in Scotland and Wales, as well as in parts of northern England, reflecting lower affordability pressures and a more balanced relationship between supply and demand.
Rightmove also expects the start of the year to see a seasonal lift in activity, with a traditional post-Christmas surge potentially amplified by buyers and sellers who paused their plans during the period of Budget uncertainty.
DELAYED DECISIONS
A survey of more than 10,000 potential movers found that one in five delayed decisions until after the Budget, a group the company expects to return to the market early in the new year.
The outlook suggests first-time buyers could benefit from 2026 conditions, with wage growth expected to outpace house price inflation and slower rent rises easing the challenge of saving for a deposit.
However, Rightmove cautions that mortgage rates remain elevated and affordability pressures persist, particularly in the south of England, while tax changes at the very top end of the market could dampen activity in higher-value homes.
FIRST-TIME BUYER BOOST
Colleen Babcock, Rightmove’s Property Expert, says: “2026 will be a mix of some key property market themes continuing, and other new trends emerging.
“We expect many of those who put their moving plans on hold over the last few months will pick them back up again from Boxing Day and into the new year, now the Budget is out the way.
“We predict the market will look and feel very different depending on which area of Great Britain you’re in, and the type of property you’re looking to sell or buy, with big differences particularly between the south of England and the rest of Great Britain. The market conditions next year will favour typical first-time buyers over those at the top-end of the market.”
REGIONAL DIVIDE
Mary-Lou Press, President of NAEA (National Association of Estate Agents) Propertymark, adds: “It’s positive to see analysis pointing to a housing market that is slowly regaining its footing rather than racing ahead.
“A forecast 2% rise in prices reflects improving affordability after a subdued 2025, but also highlights how sensitive the market remains to mortgage rates and policy changes.
“The regional divide is set to persist, with more affordable markets in Scotland, Wales, and the north of England expected to outperform London and the south, where higher prices and tax changes continue to weigh on demand. This underlines the reality of a highly localised housing market.
CAUTIOUS CONFIDENCE
And she adds: “A post-Christmas bounce looks likely, driven by movers who paused plans during Budget uncertainty, though activity is expected to be led by needs-based buyers rather than rapid price growth.
“First-time buyers are well placed to benefit from stronger wage growth, improved affordability, and good levels of supply, while the introduction of the Mansion Tax is likely to add further drag at the top end of the market.
“Overall, 2026 appears set to be a year of cautious confidence, with realistic pricing and local market knowledge from reputable property professionals key to success.”
