House prices set to rise by 2%-4% in 2026

UK house prices are forecast to rise by 2%–4% next year, according to Nationwide, with the average home potentially increasing from £272,998 to nearly £284,000. While growth is expected to continue, rising wages and falling mortgage rates are improving affordability, easing pressure on buyers. Interest rate cuts and looser mortgage stress tests have already supported demand, despite annual price growth slowing to 1.8% in November. Rightmove also predicts a 2% rise in 2026. Regional price gaps are narrowing, with weaker growth in London. Nationwide said gradual affordability improvements should support steady price rises rather than a sharp surge. 

The Guardian (16/12/2025)   The Independent (16/12/2025)   The Standard (16/12/2025)   The Times (16/12/2025)