Personal circumstances are always the main driver when moving home, but the wider market can influence both timing and value. So what could the next 12 months hold for the housing market? Our forecast below will help ensure you plan with confidence.
2026 is expected to remain a buyer’s market
Rightmove reported 2025 as a buyers’ market, and many indicators suggest this could continue into 2026. A wider choice of homes for sale, cautious pricing, and the impact of higher interest rates have ensured buyers retain some bargaining power.
However, correctly priced properties are still selling quickly, with competitive interest and multiple viewings.
What’s happening with house prices now?
According to Halifax, average UK house prices reached a peak in 2025. However, market confidence may continue to be influenced by policy changes and the stamp duty increases implemented on 1st April 2025, which are expected to continue affecting purchasing costs into 2026.
Mortgage rates have climbed sharply since 2022 following the mini-budget, but have since eased. While still higher than early-2020 levels, rates have dropped significantly from the 2023–2024 highs, improving affordability.
Mortgage rate outlook
Industry forecasts suggest that mortgage rates will continue to fall through 2026 as the Bank of England cuts interest rates further. However, external factors such as inflation or global events could still influence the speed of change.
What’s happening with sold prices?
Sold prices provide the most reliable insight, but reflect agreements made months before completion. Recent reports from 2025 show:
Nationwide recorded an annual rise compared to 2024.
Land Registry reported annual price growth through 2025, confirming modest improvement in values.
Conclusion: Sold prices confirm modest growth, with well-priced homes performing strongly.
What’s happening with asking prices?
Asking prices provide a live snapshot of seller confidence. They are not final achieved prices, but they reflect trends and sentiment. With more stock available and buyers staying cautious, realistic pricing matters more than ever.
House price predictions for the next 5 years
Savills forecast that UK average prices will rise inexcess of 20%. Growth will be driven by: Gradually falling mortgage rates and a long-term lack of supply
Continued demand from first-time buyers and families
2026 pricing outlook
Experts anticipate average asking prices could increase by around 4% in 2026, in line with long-term averages. This contrasts sharply with the pandemic boom years (2020–2022), when demand far exceeded supply and prices saw unprecedented growth.
Mortgage market outlook
Two- and five-year fixed rates could fall to around 3.5% in 2026, offering improved affordability.
Mortgage pricing will be closely tied to the pace of interest rate cuts.
Two-year deals may grow in popularity for buyers wanting flexibility. It is unlikely we will see a return to the ultra-low rates of 2020–2021.
Stamp duty costs increased for many buyers from 1st April 2025, which fuelled a burst of activity early in 2025 and could continue to influence buyer behaviour into 2026.
Nigel Deekes, Partner at Acres, comments : We expect the market to remain active as buyers continue their search to secure a new home. As is typical, January is likely to bring a sharp upturn in activity, with a number of new listings already being quietly marketed on a low-profile basis. We anticipate strong interest, although negotiations are likely to continue as buyers seek to secure the best property at the most competitive price.
Remortgaging will be a key theme in 2026
Many homeowners are reaching the end of fixed deals taken during either the pandemic or the post-mini-budget peak.
What this means: Those who fixed in 2020–2021 will likely face higher rates.
Those who fixed in 2022–2023 may see lower monthly repayments if rates continue to fall.
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Lisa Brown of Acres Financial Services adds: “Buyers need to act decisively, as lenders are changing rates rapidly. A deal today may look very different a week later.”
If you’re thinking of moving home soon, a good way to find out how much you could borrow is to use our mortgage calculator. You can get a personalised result by applying for a Mortgage in Principle This email address is being protected from spambots. You need JavaScript enabled to view it. , which will take you one step closer to a mortgage offer.
Want to check how much your home is worth? You can get an Instant Valuation here.
Acres’ 2026 outlook
Following the Base Rate cuts in 2024–2025, buyer demand has risen sharply:
Enquiries to Acres increased by 33% compared to 2024
Sales were agreed up over October and November 2025
Despite seasonal price dips in late 2024, strong activity through 2025 suggests upward movement in 2026, particularly if mortgage rates continue to fall.
Rightmove notes: “Momentum is building again, but the market will still face twists and turns.”
Local activity at Acres
Prices remain strongest for properties priced under £300,000, particularly among first-time buyers, where demand continues to outpace supply. Areas situated near well-regarded schools, green spaces, and transport links are consistently performing above the local average.
In the Sutton Coldfield area specifically, we’re seeing particular strength in the mid-range market (£350,000 to £600,000), driven largely by families looking to upsize. This sector remains buoyant, with competitively priced homes attracting strong interest and often multiple viewings.
Are you considering moving home? If you would like to discuss selling your home, please get in touch with us This email address is being protected from spambots. You need JavaScript enabled to view it. or call any of our busy, helpful teams / offices :
Four Oaks 0121 323 3088
Sutton Coldfield 0121 321 2101
Walmley 0121 313 2888
Great Barr 0121 358 6222
Lettings 0121 312 4997
Mortgages 0121 387 1616
Thank you for reading this article, and your interest in Acres and our property for sale.
Nigel & Jayne Deekes – Acres Partners
