Essentially Mortgages Q1 Winter-2026

House Prices: What to Expect in 2026 and Beyond

As 2026 gets underway, many homeowners and prospective movers are reviewing their plans and considering what lies ahead for the UK housing market. The latest five-year forecast from Savills provides valuable insight into how house prices could evolve over the coming years.

A Measured Start to the Cycle

According to Savills, house price growth is expected to remain relatively modest in the short term.

Average UK house prices are estimated to have increased by just 1.0% during 2025, with growth forecast to rise slightly to around 2.0% in 2026.

This slower pace reflects a combination of factors, including:

• Ongoing economic uncertainty
• Affordability pressures
• Softer buyer demand
• Higher borrowing costs compared with previous years

While the market remains active, these factors are expected to limit rapid price growth in the immediate future.

Growth Expected to Accelerate from 2027

Looking further ahead, Savills forecasts that the housing market will begin to gather momentum from 2027 onwards.

Assuming interest rates continue to ease and affordability improves, stronger buyer confidence is expected to support higher levels of activity and price growth.

Current forecasts suggest:

Year	Forecast House Price Growth
2026	2.0%
2027	4.0%
2028	5.0%
2029	5.5%
2030	4.0%

Taken together, these projections would result in a cumulative increase of just over 22% in average UK house prices over the five-year period.

Regional Differences Remain Significant

As has been the case in recent years, housing market performance is expected to vary considerably across the UK.

More affordable regions are forecast to see the strongest growth, with areas such as:

• The North East
• Yorkshire and the Humber

expected to experience total price growth of approximately 28.8% by 2030.

In contrast, London and much of southern England are likely to see more modest increases due to continued affordability constraints.

In London, property prices are forecast to rise by around 13.6% over the same period, significantly below the national average.

What This Could Mean for Buyers and Movers

First-Time Buyers

The relatively low levels of house price growth expected during the next couple of years may provide an opportunity to enter the market before prices begin to accelerate from 2027 onwards.

Upsizers and Growing Families

Those planning to move within the next three to five years could benefit from increasing equity as property values gradually strengthen.

Buyers in Higher-Value Regions

Slower and steadier growth in areas such as London and the South East may place greater emphasis on long-term planning rather than short-term gains.

Buyers in More Affordable Regions

Stronger projected price growth in northern regions could make earlier purchases particularly attractive for those considering relocation or investment opportunities.

Buy-to-Let Investors

Moderating property prices, easing mortgage rates and continued rental demand may gradually improve market conditions. However, tighter regulations and higher taxation are likely to limit growth compared with previous market cycles.

Looking Ahead

While no forecast can guarantee future performance, the outlook suggests a period of gradual recovery followed by stronger growth as affordability improves and confidence returns to the market.

Whether you’re a first-time buyer, homeowner, investor or planning your next move, understanding the likely direction of the housing market can help you make more informed decisions.

Need Advice?

If you’d like support navigating the changing property market and understanding how future trends could affect your plans, we’re here to help.

Get in touch to discuss your circumstances and receive tailored mortgage and property advice.

Source: Savills Five-Year Housing Market Forecast, 2026.