According to Mortgage Soup, leading economists and property analysts predict national house price gains of 4-5% after growth slowed to around 2.5% this year.
House prices jumped nearly 5% year-on-year in early 2025 as buyers rushed to beat upcoming Stamp Duty Land Tax changes. Analysts say the upward momentum is set to continue into the New Year, with Northern England, Scotland, and Wales leading the recovery, and London and the South following suit, reports Property Wire.
Although recent growth has been modest, the average property price of £270,000 remains at record highs - £8,000 more than a year ago. If forecasts are accurate, the average UK home could reach £300,000 by late 2026.
Estate agents broadly support a 4% increase, while Savills’ long-term data suggests cumulative gains of 21.6% by 2029. According to MoneyWeek, Savills now projects a 1% rise in the mainstream housing market. Meanwhile, Knight Frank’s outlook is slightly more reserved but still anticipates growth to accelerate from 2026 onwards, forecasting increases of 3% in 2026, 4% in 2027, 4.5% in 2028, and 5% in 2029.
Jason Harris-Cohen, managing director of LandlordBuyer, said: “After several challenging years, the forecasted rebound offers a welcome turning point.”
