At Barlow Irvin, we’re committed to keeping our customers informed about the property market regarding house prices and what will impact them.
If you own a house or you’re hoping to at some point down the road, it’s important to understand what’s going to impact property values over the next year, as well as what new mortgage products might become available.
Our Founder and Director, Gary Oxborough, gives his thoughts and predictions for the 2026 house buying market.
UK house price forecast for 2026
In terms of house prices, we predict that we will see an increase, but certainly nothing drastic. We’d estimate a 2 - 4% increase over the year, as this is also what most big banks are predicting.
With that in mind, the rush to become a first time buyer isn’t critical, though it’s always a good idea to get on the property ladder when prices are always rising.
What will impact house prices in the UK in 2026?
House prices are always heavily impacted by affordability, and this is no different in 2026. Interest rates are actually on their way down, and we’ll potentially see another reduction in March.
Fixed rates are also trending down, with the average 2 year fixed-rate mortgage down to 4.83% at the start of 2026, compared to 5.48% at the start of 2025. This presents a great opportunity for first time buyers as low rates directly improve affordability stress tests, meaning buyers are likely to see larger loan potentials.
Something else which may impact house prices this year is the Renters Rights bill (2025), which removes the ability for landlords to carry out ‘no-fault’ evictions, bans rental bidding and essentially changes the landscape for smaller landlords.
As a result, we might see some properties pushed back onto the market as these landlords decide to sell up instead of continuing to rent, which may push house prices down slightly.
New mortgage rates, products and interest in 2026
In terms of mortgage types, rates, products and interest, 2026 has a lot to offer. Whilst we’re unlikely to see ultra low rates across standard mortgages, fixed-rates may dip slightly whilst lenders try to compete in a competitive market.
Many lenders are targeting the first time buyer market specifically. Accord is offering a £5k mortgage (which could be 1% up to £500k), which is suitable for young professionals with a good income.
Another product on the market is Santander’s 2% deposit mortgage, though this is with a minimum £10k deposit.
On top of this, Barclays is now one of the only lenders in the UK who offers a 100% mortgage, which is known as the ‘family springboard mortgage’. This is a good opportunity for those with a high income but low savings, presenting an opportunity to immediately jump on the property ladder.
The housing market in 2026: Current demand
Gary says that he’s seen the demand for housing remains solid in 2026, with first time buyers in particular driving the market heavily.
“As mortgage rates drop, the market increases, meaning that competition is high but a range of opportunities exist” Gary explains. This is something we expect to see continue throughout the year.
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The housing market and landlords in 2026
The ‘Renters Rights bill’ contains a lot of new legislation which landlords are compelled to follow. Much of this is likely to make it more time-consuming and expensive to let a property, particularly for smaller landlords.
The impact this may have on the housing market is multi-faceted. The bill pushes landlords to be more professional and attentive, which means they may move to limited companies rather than acting under their own names. On one hand, this increases general living conditions for renters, which could minorly decrease demand for renters to buy as soon as possible.
On the other hand, many landlords might decide to sell their property as a result of the new bill, increasing opportunities for first time buyers.
Overall, we’re expecting a strong housing market in 2026, with lots of opportunities for new buyers and people already on the ladder alike.
If you’re looking to jump on this opportunity, you need a specialist local mortgage advisor to point you in the right direction and give you the market insight required to make the right buying decision.