Average UK house prices and market trends in 2026
Average UK house prices and property market trends in 2026
We take a look at the current state of the UK property market.
What is happening to UK house prices in 2026?
Average house prices in the UK are still rising, but only modestly compared to previous years. Global events are having an impact, as well as domestic economic issues. There are marked regional variations, but the overall UK property market in 2026 is a little sluggish.
How do house prices compare across the UK?
| REGION | AVERAGE PRICE IN MAY 2026 | YEAR ON YEAR CHANGE |
|---|---|---|
| East Midlands | £241,000 | +3.2% |
| East of England | £338,000 | +2.3% |
| London | £545,000 | -3.7% |
| North East | £164,000 | +5.9% |
| North West | £220,000 | +5.8% |
| South East | £381,000 | +1.2% |
| South West | £303,000 | +1.7% |
| West Midlands | £248,000 | +2.7% |
| Yorkshire & the Humber | £209,000 | +4.3% |
| Wales | £215,000 | +4.2% |
| Scotland | £196,000 | +4.4% |
| Northern Ireland | £198,000 | +7.4% |
Sources: Gov.uk, Registers of Scotland, NISRA
The latest statistics show that house prices on average in England have risen by 2.7% between May 2025 and May 2026. The average price of a property in England is £292,000. While London, the South East and the East of England are still the most expensive areas of the country in which to buy, house prices have risen fastest in England in the North East and North West. In the whole of the UK, the biggest growth is in Northern Ireland. In fact the property market in the UK is relatively flat in its traditional hotspots of London and the South East of England, with average prices falling in the capital by 3.7% over the last year.
How do house prices compare by property type?
The below table shows the difference in prices for properties in England:
| PROPERTY TYPE | AVERAGE PRICE MAY 2026 | AVERAGE PRICE MAY 2025 | YEAR ON YEAR CHANGE |
|---|---|---|---|
| Detached house | £474,000 | £462,000 | +2.5% |
| Semi-detached house | £291,000 | £279,000 | +4.1% |
| Terraced house | £244,000 | £237,000 | +3.2% |
| Flat/maisonette | £217,000 | £222,000 | -2.2% |
| All | £292,000 | £286,000 | +2.3% |
Source: Gov.uk
What is affecting house prices in 2026?
Mortgage rates and affordability
Always one of the most significant factors affecting the property market are mortgage interest rates and the cost of borrowing. In the last quarter of 2025, there was a great deal of uncertainty about mortgage rates. The Autumn Budget was looming, and it was as if the property market was holding its breath. After the budget, the Bank of England reduced the interest base rate to 3.75%, leading to some improved mortgage deals. However, the war in the Middle East in 2026 has led to global economic pressures, and mortgage rates have risen again as a result.
Supply and buyer demand
It is definitely a buyer’s market currently in the UK. Supply of property is vastly exceeding demand and the number of available buyers, so there isn’t the competition that can help drive up prices. Sellers are having to reduce prices more to attract offers and sales, and this is leading to a flatter market. While there was a spike in demand at the beginning of 2026, the property market is now quieter, as is often the case in the summer period.
Employment, earnings and buyer confidence
According to the Office for National Statistics, wages in the UK rose by 3.4-3.8% between February and April 2026. This exceeds the annual growth in house prices in England, so analysts expect there to be a slight rise in buyer confidence as mortgages become more affordable. However, unemployment has reached 5% this year, the highest jobless rate for nearly five years, dampening demand for property.
Local market conditions
Naturally there are fluctuations between areas. Northern Ireland has shown the biggest surge in average price, due primarily to a shortage in housing supply and strong employment conditions. Houses are cheaper here than the rest of the UK, with the exception of Scotland, and this attracts buyers from outside Northern Ireland, helping to boost demand further. London, by contrast, is the only part of the UK where average prices have fallen. Factors that might be behind this include:
- More first time buyers in London having to pay stamp duty, as the 0% rate dropped to properties over £300,000 (from £425,000)
- Rising service charges of leasehold flats
- Rental reform prompting landlords to sell rental properties, increasing the housing stock
What do current trends mean for buyers and sellers?
What does the current market mean for buyers?
It’s a good time to be a buyer. You have less competition, and more housing stock to choose from. You can make lower offers, especially if you know a property has been on the market for a while. The only problem for buyers is the difficulty in getting a good mortgage deal. Despite interest rates being cut in December 2025, lenders have been reluctant to reflect this in their mortgage rates.
What does the current market mean for sellers?
Sellers are having to be patient, and lower their expectations. They may have to reduce the asking price of their property, consider lower offers, and make changes to the property to add value. Moving estate agents is another option, or even taking the property off the market for a period. The property market is expected to pick up again during the autumn, as it usually does, so sellers still have plenty to be positive about.
UK housing market predictions
Caution is the watchword in 2026. While a growth in wages and a reduction in interest rates has led to a slight increase in mortgage affordability, the uncertainty caused by the US-Iran conflict, particularly the impact on the movement of goods through the Strait of Hormuz, means the property market is not as buoyant as it could be. Sales are 9% down on 2025, but some experts expect the autumn to bring a bounce, if mortgage rates are stable.
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