UK Housing Set for Steady Gains as Borrowing Becomes More Flexible

House prices in the UK could rise modestly in 2026, with forecasts suggesting growth of between 2% and 4%.

Improved affordability, driven by rising wages and falling interest rates, is expected to support demand.

A 4% increase would lift the average home price to nearly £284,000, according to current estimates.

Mortgage rates have been declining, making fixed-rate deals more attractive to buyers.

Regulators are also pushing for mortgage products that better reflect modern working patterns and income levels.