Research suggests a strong recovery in UK house prices for 2026, with national growth of 4% to 5%, marking a pivotal shift after years of stagnation amid rising interest rates and regulatory pressures.
Research indicates that UK house prices are poised for a notable rebound in 2026, with national growth projected between 4% and 5%, following a relatively flat market in 2025. After several challenging years shaped by rising interest rates, tighter regulation, and squeezed affordability, this predicted upturn offers a welcome shift for the housing sector. The average UK house price currently hovers around £280,000, and if these forecasts hold, prices could exceed £300,000 by the end of 2026, marking a significant milestone for both buyers and sellers.
Leading industry voices, including Jason Harris-Cohen, managing director of LandlordBuyer, highlight that this recovery could create favourable conditions for landlords contemplating sales amid tighter regulations and rising borrowing costs. Analysts expect London to experience around 4% growth in 2026, mirroring national trends, while northern regions such as the North West and Yorkshire & Humber are projected to outperform over the medium term, with five-year gains potentially surpassing 20%. Savills’ long-term forecasts support this outlook, suggesting a cumulative UK house price increase of approximately 21.6% by 2029.
This positive trajectory is corroborated by multiple economic forecasts. Savills has upgraded its five-year outlook, predicting steady year-on-year growth—2.5% in 2024, 3.5% in 2025, rising to 4.5% and 5% in 2026 and 2027 respectively—which could result in average prices reaching around £346,500 by 2028. Capital Economics projects a 5% rise in 2026, attributing the recovery mainly to expected reductions in mortgage rates, which are anticipated to fall more sharply than previously thought. This easing of borrowing costs is likely to ease affordability pressures and stimulate demand, particularly benefiting first-time buyers and investors.
However, some variance exists among forecasts. Knight Frank offers a more cautious view, anticipating house price growth of 2.5% in 2025 and 3% in 2026, with cumulative growth over five years slightly below earlier estimates. This tempered optimism stems from ongoing affordability constraints and revised expectations around mortgage interest rates. Inflation also remains a factor; economists forecast an average of 2.8% inflation this year, compelling the Bank of England to proceed cautiously with rate cuts to balance economic growth and housing market stability.
On a regional level, London’s housing market, historically underperforming for nearly a decade, is expected to see renewed strength. Capital Economics forecasts a 6.5% increase in London house prices in the coming year, outpacing the UK national average. This rebound in the capital is attributed to factors such as lower mortgage rates, eased lending criteria, and persistent supply limitations, which collectively should support price growth. Meanwhile, the rental sector faces its own dynamics, with rising rents driven by tight supply and legislative changes under the Labour government, potentially influencing landlords’ decisions in the coming years.
Looking further ahead, experts suggest that momentum could build steadily beyond 2026, fostering greater market stability and predictability up to and beyond 2029. This outlook projects a more balanced and sustainable housing market recovery, with regional hotspots maintaining stronger growth trajectories. For landlords, the period around 2026 to 2027 could prove pivotal, as elevated borrowing costs and regulatory pressures lead a significant share to consider exiting the market. Should the rebound materialise as anticipated, the latter half of the decade may witness renewed investment and heightened demand across the UK housing sector, signalling a turning point after years of uncertainty.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
The narrative presents forecasts for UK house prices in 2026, with projections of a 4-5% increase. Similar forecasts have been published by reputable sources such as Savills and Capital Economics, indicating that the information is current and not recycled. ([savills.com](https://www.savills.com/insight-and-opinion/savills-news/369036/average-house-prices-to-increase-by-23.4–over-the-next-five-years?utm_source=openai))
Quotes check
Score:
9
Notes:
The direct quote from Jason Harris-Cohen, managing director of LandlordBuyer, is unique to this narrative, with no exact matches found in earlier material. This suggests the content is original or exclusive.
Source reliability
Score:
7
Notes:
The narrative originates from Property Reporter, a UK-based publication focusing on property news. While it is a specialised outlet, it is not as widely recognised as major media organisations like the BBC or Reuters. The managing director of LandlordBuyer, Jason Harris-Cohen, is cited; however, further verification of his public presence and credibility is recommended.
Plausability check
Score:
8
Notes:
The projections of a 4-5% increase in UK house prices in 2026 align with forecasts from reputable sources such as Savills and Capital Economics. ([savills.com](https://www.savills.com/insight-and-opinion/savills-news/369036/average-house-prices-to-increase-by-23.4–over-the-next-five-years?utm_source=openai)) The narrative also mentions regional variations, with the North West and Yorkshire & Humber projected to lead five-year growth, which is consistent with other analyses. ([investropa.com](https://investropa.com/blogs/news/uk-price-forecasts?utm_source=openai))
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative provides current and original forecasts for UK house prices in 2026, supported by projections from reputable sources. The unique quote from Jason Harris-Cohen adds credibility, and the information aligns with other analyses, indicating a high level of reliability.
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