What will happen in the property market in 2026? Britain's top experts share their predictions, and it's good news all round

After another year marked by political and economic headwinds, could prospects for the housing market be looking up? Here’s what the experts predict could lie ahead for all-things bricks and mortar in 2026...

What will happen to UK property prices in 2026?

• Savills: +2%
• Knight Frank: +3%
• Hamptons: +2.5% (Great Britain, rather than whole of UK)
• Jackson-Stops: +2% to +3%
• Chestertons: +2%
• Nationwide: +2% to +4%
• Halifax: +1% to +3%
• Zoopla: +1.5%
• Rightmove: +2%

Knight Frank and Savills have both revised down their UK house price forecasts for 2026 from 4%. Knight Frank cites a high supply of homes for sale and faltering confidence, while Savills pointed to weaker buyer sentiment and concerns about the economy and the tax environment.

That said, there are signs of resilience, according to Aneisha Beveridge, head of research at Hamptons. ‘Inflation is easing, mortgage rates are falling, and affordability is improving, which should support modest price growth next year,’ she says. ‘But it’s hard to ignore the growing drag of taxation and politics,’ she adds.

Nick Leeming, chairman of Jackson-Stops, believes the market will shift from subdued to steady next year. ‘Following almost six years of exceptional volatility driven by Covid, fiscal shocks and political uncertainty, 2026 is now expected to mark a return to a more stable and recognisable housing market,’ he says.

Over at Halifax Mortgages, Amanda Bryden says that while wage growth is forecast to slow and unemployment may edge higher, lower interest rates and easing inflation should help boost buyers’ purchasing power.

Fellow lender Nationwide is also cautiously upbeat. Chief economist Robert Gardner expects housing market activity to ‘strengthen a little further as affordability improves gradually (as it has been in recent quarters) via income growth outpacing house price growth and a further modest decline in interest rates’.

What’s in store for the country property market in 2026?

With the Budget now behind us, many buyers and sellers are expected to give the green light to plans that were shelved in the autumn.

Already, Strutt & Parker has reported a 173% surge in the number of homes launched for sale across its branches between November 26 and December 5 compared with the same 10 days in 2024. And according to Jackson-Stops, sellers are lining up to launch in January or prepare for a spring sale.

Oliver Custance Baker, head of the national country house department at Strutt & Parker, explains: ‘The market will be driven by buyers who want to move forward with their plans. And ultimately, good quality houses across the country will generate good levels of interest.’

Jamie Freeman, of buying agency Haringtons UK, believes needs-based buyers will be the strongest force in the market. He explains: ‘Families who have to move for schools, space or commutability do not sit on their hands, and with lenders finally trimming mortgage rates, they are feeling more confident than they have in years.’

Fellow buying agent Samantha Child, of Samantha Child Property Search, which covers Surrey, Hampshire and West Sussex, anticipates ‘fresh energy at every level: more properties coming to market and a noticeably stronger appetite from buyers to restart their searches’.

Child adds: ‘Crucially, borrowing costs are forecast to fall to their lowest point in three years, which will further oil the wheels of activity and give buyers additional confidence and spending power.’

Nigel Bishop, founder of Recoco Property Search, says a greater choice of properties for sale in some areas next year ‘will create a buyers’ market and give them the upper hand during price negotiations’.

In Surrey, Warren Fraser, of Curchods, describes 2026 as ‘shaping up to be one of the most vibrant and opportunity-filled years we’ve seen in some time’. He enthuses: ‘Buyer enthusiasm is returning, interest-rate whispers hint at one or two possible cuts ahead, and sensibly priced new instructions are gaining immediate traction.’

And in Cornwall, where many buyers have put their move on hold in recent years, Duncan Ley, of Humberts, says 2026 ‘may be the time [for buyers] to finally take the leap’.

But Jess Simpson, of buying agency Stoneacre Advisor, which specialises in farms and country estates, strikes a more downbeat tone.

‘The Budget now being behind us will not suddenly result in a stronger market,’ she notes. ‘Anti-wealth rhetoric, increased cost of living/running businesses and global market forces will continue to dampen confidence, but there will be some trading - where value prevails.’

What will happen to property prices in London in 2026?

• Savills: London +-0%
• Knight Frank: Greater London +2%, prime central London +-0%, prime outer London +2%
• Hamptons: +-0%
• Chestertons: Greater London +2%, prime central London +1%

The shifting tax landscape looks set to leave its mark on the London housing market next year. Hamptons anticipates flat price growth across the capital as the market digests recent tax reforms. Small price falls in the £1.9 million-plus segment are likely to be offset by growth in the mainstream market, it says.

Knight Frank has downgraded its price forecasts for Greater London (previously 3%), prime central London (previously 2.5%) and prime outer London (previously 3.5%). According to Bill, the scrapping of non-dom rules and the 2% increase in stamp duty for additional homes have taken their toll in prime central London.

Chestertons believes modest price growth in prime central London will be supported by strong fundamentals, including an enduring supply-demand imbalance, global investment appeal, a stable legal and tax framework, and strong long-term performance.

Meanwhile Claire Whisker, of First In The Door, describes 2026 as a year of gradual recovery and recalibration for London. In her view, prime pockets of central and south west London will lead the recovery, reflecting improved value, returning international appetite and resilient demand from families.

What property buyers will want in 2026

So, what will buyers have their eye on in 2026? Appetite for homes in need of TLC could edge up, suggests Sebastian Hipwood, co-founder of Blue Book Agency: ‘A few years ago, anything short of turnkey was dismissed outright,’ he says. ‘In 2026, we think more buyers will be willing to roll up their sleeves if the fundamentals are right.’

With many budgets squeezed, James Greenwood, of Stacks Property Search, expects more buyers to focus on good value properties where they can carry out small projects that have big impact. He cites changes such as reconfiguring layouts, loft conversions, opening kitchens into gardens, and integrating garages into living space.

Properties that offer flexibility will also be highly sought-after, according to Stacks Property Search. Think layouts where spaces can be opened up and closed off. And annexes that can serve different purposes: a space for grown-up children or elderly relatives, a nanny or an au pair, or guests.

This chimes with Hipwood, who says: ‘Country buyers increasingly like the idea of a cottage they could rent out, an annexe suitable for Airbnb, or simply a flexible space that gives them options in the future. Most will not use it, but in an unpredictable world, the comfort of knowing a house can support itself if needed is becoming far more appealing.’

With growing awareness of the green agenda, energy-efficient homes with strong EPC ratings will become ‘ever more important’, reports Ed Jephson, of Stacks Property Search.

‘High-quality insulation, double or triple glazing, and efficient heating systems such as heat pumps and solar panels will be strong selling points,’ Jephson explains. ‘Smart-home technology that supports energy management will also become more desirable.’