UK house prices are forecast to rebound in 2026 after a subdued period of growth, with leading economists and property analysts predicting gains of 4-5% nationally.

After slowing to around 2.5% in 2025, growth is expected to accelerate the following year.

Reuters polling points to an average national increase of 4% in 2026, with London broadly in line at 4% and regional markets expected to rise between 3.5 – 4.5%.

Estate agents are forecasting growth of about 4%, while Savills’ long-range data suggests cumulative gains of 21.6% by 2029.

UPWARDS TREND

Northern regions are tipped to lead, with the North West (24.3%) and Yorkshire and the Humber (23.7%) expected to outperform.

If the projections hold, the average UK house price, currently about £280,000, could pass £300,000 by the end of 2026.

The outlook could prove significant for landlords, many of whom have faced tighter regulation, rising borrowing costs and squeezed profitability.

Research by LandlordBuyer suggests that a rebound in 2026 may create a favourable moment for those considering exiting the market.

CHALLENGING TIMES

Jason Harris-Cohen, managing director of LandlordBuyer, said: “After several challenging years, the forecasted rebound offers a welcome turning point.

“Analysts expect national house price growth of 4-5% in 2026, with London tracking similar growth and northern regions tipped to outperform over the longer term.

“With over a third of landlords reported to be considering an exit, 2026 to 2027 could prove a defining window for decision-making.”