UK house price forecast 2026
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Thursday 5th February 2026
Last updated: 5th February 2026
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Pages in this SectionIf you’re planning to move home in 2026, the outlook for UK house prices will depend heavily on where you live and the type of property you own.
Current forecasts suggest UK house prices may rise modestly overall, by around 1.5% on average, but that headline figure hides some important regional differences. Stronger price growth is expected in parts of Scotland and Northern England, where affordability remains relatively strong. In contrast, London and much of the South are likely to see slower growth, with some homeowners (particularly flat owners) facing the prospect of selling for less than they paid.
Below, we explore what’s driving this split in the UK property market and what it could mean if you’re buying, selling, or hoping to trade up in 2026.
Where UK house prices are expected to rise fastest in 2026
According to Zoopla’s latest analysis, Scotland dominates the strongest house price growth forecasts for 2026. Areas such as Motherwell, Glasgow, Paisley, Falkirk, Kirkcaldy and Edinburgh are expected to see healthier demand than many parts of the South.
A key reason is affordability. These markets typically benefit from lower average prices, quicker selling times and less unsold stock sitting on the market.
In practical terms, this often means:
- Homes sell faster, signalling steady buyer demand
- Large price reductions are required by fewer sellers
- Limited oversupply helps support property values
Outside Scotland, parts of Northern England and the Midlands also appear better placed than the South - particularly areas that remain affordable while offering access to larger employment centres.
Why London and the South may underperform
Affordability remains the biggest challenge in London and the South East. Higher house prices combined with the market’s adjustment to higher mortgage rates have reduced how much buyers can borrow, while increased choice in some areas has shifted negotiating power towards buyers.
Zoopla expects London to be among the weakest regions for house price growth in 2026, driven by higher average prices and longer selling times. For buyers, slower growth can sometimes present better-value opportunities. For sellers, it means expectations may need to be adjusted.
London sellers are now the most likely to sell at a loss
Separate analysis using Land Registry data suggests London has become the UK region most likely to see homes sold for less than their purchase price. In 2025, around 14.8% of London sellers reportedly sold at a loss - higher than anywhere else in the country.
Much of this comes down to the difference between flats and houses:
- Flats account for a large share of London transactions and the vast majority of loss-making sales
- Houses are far less likely to sell at a loss, reflecting stronger long-term demand for family homes
In boroughs where flats dominate sales, loss-making transactions are particularly common, while more affordable areas appear less exposed.
Why this matters if you’re hoping to trade up
If your flat hasn’t risen in value, or has fallen, it can make moving to a house harder. Even if mortgage rates ease, the gap between selling and buying may still feel difficult if your equity hasn’t grown as expected.
What the 2026 housing outlook means for buyers and sellers
If you’re buying
- In Scotland and parts of the North, stronger demand and faster sales may mean acting quickly and budgeting carefully for competition
- In London and the South, buyers may have more room to negotiate - but affordability should still come before forecasts
If you’re selling
- Pricing strategy matters more than ever. Overpricing in slower-growth areas can lead to longer selling times and later reductions
- Presentation and sale readiness can make a real difference where buyers have more choice
Using a personal loan to help with moving home costs
A personal loan won’t affect house prices - but it can help manage the upfront, one-off costs that often come with moving home, particularly if you want to protect your everyday cashflow.
A fixed-rate personal loan may be worth considering for costs such as:
- Essential home improvements before selling or shortly after moving
- Decorating, flooring, appliances or furniture
- Removal costs, legal fees and other moving expenses
With fixed repayments spread over time, borrowing can be easier to plan for than open-ended credit. As always, it’s important to borrow only what you need, make sure repayments are affordable, and factor the commitment into your wider budget alongside your mortgage.
Planning your next move
Whether you’re buying in a higher-growth area or navigating a slower London market, the same principles apply:
- Be realistic about price and timing
- Budget beyond the mortgage - moves often cost more than expected
- Use finance thoughtfully to smooth larger one-off expenses
Taking a clear-eyed approach can help you move forward with confidence, whatever the 2026 property market brings.
Written by
Anna Stacey is a skilled content writer based in Lincolnshire, specialising in the financial services industry. With over four years of experience in the digital landscape, she has an aptitude for crafting informative and engaging content that addresses a range of customer needs. Spanning diverse topics, from finance and lending to broader digital marketing trends, Anna is committed to delivering customer-centric content that not only educates but also empowers readers to make informed decisions.
