From Flat to Flourishing: UK Housing Market Set to Rebound

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After a subdued performance throughout 2025, the UK housing market is expected to regain momentum in 2026, with national price growth forecast between 4% and 5%. This anticipated rebound comes after a year of stagnation and could present a timely opportunity for landlords reassessing their portfolios.

Economic forecasts suggest house prices will rise by approximately 5% by the end of Q4 2026, building on a modest 2.5% increase seen in the previous year. Leading estate agencies are projecting around 4% growth for 2026, contributing to a cumulative rise of nearly 23% by the close of 2029. These projections reflect renewed confidence in the market’s long-term trajectory.

Regional performance is expected to vary, with London likely to mirror the national average at 4%, while areas such as the North West and Yorkshire & Humber are tipped to outperform. Long-term estimates indicate potential growth of over 24% in these regions by 2029, positioning them as key hotspots for future investment.

Currently, the average UK house price stands at approximately £280,000. If market expectations hold, values could exceed £300,000 by the end of 2026. For landlords facing increased regulation, higher borrowing costs, and tighter margins, this projected uplift may offer a favourable exit point or a chance to restructure holdings.

The outlook for the second half of the decade is broadly positive. Analysts anticipate steady price appreciation through to 2029, which could bring greater predictability for both buyers and sellers. With a significant proportion of landlords reportedly considering divestment, the 2026–2027 period may prove pivotal for decision-making.

As the market prepares to shift gears, investors and property owners alike should remain alert to emerging trends. Whether the goal is to capitalise on rising sale values or reposition assets for long-term growth, the coming year offers a strategic window to act.