Posted on: February 1, 2026
What Could 2026 Mean for You?
A look at House Prices, Mortgage Rates & the Economy
If you’re thinking about buying, selling, or remortgaging in 2026, you’re not alone. After a stop‑start 2025, many people are wondering what the year ahead might bring for the housing market, mortgage rates, and the wider economy.
Here’s a breakdown of what the latest forecasts suggest — and what it could mean for your plans.
🏡 House Prices: A Modest Rise Expected
After a very quiet 2025, most experts expect house prices to rise gently in 2026.
What the forecasts say
- Rightmove predicts a 2% rise in asking prices by the end of 2026.
- Nationwide expects growth between 2% and 4%.
What this means for you
- If you’re buying, the market is expected to remain stable.
- If you’re selling, modest price growth could help you achieve a stronger sale than in 2025.
- Regional differences will continue — areas like Scotland, Wales and the North may see stronger growth than London and the South.
📉 Mortgage Rates: Gradually Falling
One of the biggest positives for 2026 is the expectation that mortgage rates will continue to fall.
What the forecasts say
- Which? reports that mortgage rates are likely to fall further in 2026, following Bank of England rate cuts in 2025.
- Rightmove notes that rates entering 2026 are already lower than at the start of 2025, improving affordability for many buyers.
What this means for you
- If your fixed rate ends this year, you may find better deals than what were available last year.
- First‑time buyers could benefit from improving affordability and a wider choice of homes.
- If you’ve been waiting for rates to settle before moving, 2026 may offer a more comfortable environment.
🏦 Lender Attitudes: More Positive, But Still Sensible
Lenders are entering 2026 with a more confident outlook than last year.
What the forecasts say
- Lenders have already begun allowing buyers to borrow slightly more, thanks to improved affordability and falling rates.
- Analysts expect steady, not dramatic, increases in lending activity due to a still‑recovering economy.
What this means for you
- You may see more competitive mortgage products and slightly more flexible affordability assessments.
- Buy‑to‑let lending may remain tighter due to tax and regulatory pressures.
- Overall, lenders are expected to be open for business, but still responsible with their lending.
📊 The Economy: Stabilising, Not Surging
The UK economy is expected to be steady rather than booming in 2026.
What the forecasts say
- The housing market enters 2026 in a stable position, with confidence slowly returning after a disappointing 2025.
- Falling interest rates and clearer tax policy are expected to boost early‑year activity as pent‑up demand is released.
- However, long‑term economic growth is still expected to be modest, which will naturally limit how fast the housing market can grow.
What this means for you
- A stable economy means no major shocks are expected.
- Consumer confidence should gradually improve.
- The market is likely to feel more predictable, which is helpful whether you’re buying, selling, or remortgaging.
⭐ In Summary: 2026 Looks Calm, Stable & More Affordable
Here’s a quick snapshot of what experts expect:
For many people, 2026 could be a much more comfortable year to make a move — whether that’s buying your first home, upsizing, downsizing, or simply securing a better mortgage deal. If you would like to explore your options then feel free to get in touch.
Craig Power craig.power@villagefs.co.uk or Luke.spires@villagefs.co.uk
Your home may be repossessed if you do not keep up repayments on your mortgage
The information contained within was correct at the time of publication but is subject to change 01.02.2026
