There is no talk of a rebound, no suggestion of a sharp recovery and no attempt to dress modest growth up as something more exciting.
Instead, the forecast points to a housing market settling into a slower, more pragmatic phase.
Rightmove expects new seller asking prices to rise by around 2% by the end of 2026. That follows an unexpected fall of 0.6% this year, which itself reflected a market knocked off course by political uncertainty and a Budget that drained confidence in the second half. The message for next year is clear: this is about consolidation, not acceleration.
The property portal describes 2025 as a year of two halves but its expectation is that 2026 will look more like the latter part of the year than the first.
The second half of 2025 has been characterised by cautious buyers, realistic sellers and a growing acceptance that higher interest rates are no longer a temporary inconvenience but part of the new normal.
A 2% rise in asking prices barely keeps pace with inflation and that in itself is telling.
What underpins this modest optimism is affordability, or rather a gradual improvement in it.
Wage growth is expected to continue to outpace house price growth, easing pressure on buyers who have spent the past two years recalibrating what they can realistically afford.
At the same time, the volume of homes for sale remains high, reinforcing what has become a buyer’s market and limiting sellers’ ability to push prices aggressively.
As ever, national averages mask wide regional variation.
Rightmove expects London to underperform, with price growth of around 1%, while Wales, Scotland and parts of northern England are forecast to see stronger increases of closer to 3%.
This is less about momentum and more about maths. Affordability constraints bite hardest in the capital and the south, while markets with lower entry prices and a better balance of supply and demand have more room to move.
There is also a seasonal dynamic at play. The industry will be watching closely to see whether the usual post-Christmas uplift is amplified by those who put their plans on hold during months of Budget uncertainty.
Rightmove’s own survey suggests one in five potential movers delayed decisions while waiting for clarity, raising the prospect of a busier-than-usual start to the year. Whether that translates into sustained activity is another question.
First-time buyers are often cited as the potential winners in forecasts like this, and there is some logic to that view.
Slowing rent increases, improved borrowing capacity through loan-to-income and stress rate changes, and the possibility that monthly mortgage payments may undercut rents in some areas all tilt the balance slightly in their favour. But this should not be overstated.
Deposits remain a major hurdle, the Bank of Mum and Dad remains firmly in play, and stamp duty changes continue to weigh heavily on buyers in the south of England.
At the other end of the market, new taxes on higher-value homes introduce an additional layer of complexity.
Although properties valued above £2 million account for a very small share of transactions, the introduction of an annual charge from 2028 could inject volatility at the top end as buyers and sellers adjust prices and expectations.
Taken together, forecasts for 2026 suggest a housing market that is calmer, more rational and more segmented than in recent years.
That may not make for dramatic headlines, but after a prolonged period of shocks and resets, stability, even of the modest kind, may be exactly what the market needs.
EXPERT OPINION
Colleen Babcock, Rightmove’s property expert, says:
“2026 will be a mix of some key property market themes continuing, and other new trends emerging. We expect many of those who put their moving plans on hold over the last few months will pick them back up again from Boxing Day and into the new year, now the Budget is out the way.”
“We predict the market will look and feel very different depending on which area of Great Britain you’re in, and the type of property you’re looking to sell or buy, with big differences particularly between the south of England and the rest of Great Britain. The market conditions next year will favour typical first-time buyers over those at the top-end of the market.”
The information contained within was correct at the time of publication but is subject to change.
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