Zoopla expects average UK house prices to increase by 1.5% over 2026 with a stronger than usual start to the year due to a release of pent-up demand as buyers return to the market having delayed decisions in the run-up to the Budget.
The portal says this will support housing sales, which are expected to total 1.18m over 2026.
House prices are expected to continue to rise at an above-average pace, over 2.5%, across the Midlands, northern England, Scotland and Northern Ireland in 2026. Lower house prices in northern England and Scotland mean better buyer affordability and higher rate of house price inflation.
Zoopla expects this north-south divide in price inflation to continue over 2026.
Average UK house prices are projected to be 1.5% higher over 2026 with an annual average increase of 2.1% a year between 2027 and 2029 as housing affordability continues to steadily reset and supports the number of sales.
Richard Donnell, Executive Director at Zoopla, says: “2025 has been a strong year for home moves but the Budget hit activity in the final months of the year and saw many moving decisions put on hold. Now the uncertainty has lifted, we expect a stronger than usual start to 2026 as buyers return to the market. The appetite to move home remains strong but affordability remains a constraint for those buying their first home or looking to trade-up to a larger home which will keep prices in check.
“There remains plenty of homes for sale, which will boost buyer choice as we start the new year. Average UK house prices are projected to be 1.5% higher over 2026 with a continued divide between southern England and the rest of the country where affordability is better and buying costs are lower.
“It is important that sellers remain realistic on pricing to secure sales in 2026, especially across southern England. Homeowners looking to move in the year ahead should understand the value of their home and what they can afford before starting their property search.”
This article is taken from Landlord Today