UK Housing Market Poised for a Resilient Comeback in 2026

The UK housing market is demonstrating signs of resilience and potential for growth in 2026, marking a promising start to the year that could pave the way for future improvements. Despite a standstill in February, reports indicate that the average house price remains 2.8% higher compared to December 2025, showcasing the underlying strength of the market.

Early Signs of Recovery

According to Rightmove’s latest House Price Index, the UK average house price is reported at £368,019, with only a minor dip from January. This stability can be attributed to increasing buyer confidence, which has been boosted by improving economic conditions following a period of uncertainty around the Autumn Budget.

Growth in Buyer Activity and Affordability

The current landscape shows a high level of homes for sale, reaching an 11-year high for this time of year. Furthermore, average mortgage rates have dropped close to their lowest levels since September 2022, making homebuying more accessible. The average two-year fixed mortgage rate is now at 4.28%, a decrease from 4.96% a year ago, enhancing affordability for prospective homebuyers.

A Promising Outlook for 2026

Looking ahead, experts are optimistic about a rebound in activity and price growth. Colleen Babcock, a property expert at Rightmove, notes that the traditional boost from the Boxing Day Bounce could invigorate the market as many consumers look to resume their home-moving plans post-Christmas. This annual surge often reignites buyers' interest and could lead to a more active market in the upcoming months.

A Celebration of New Beginnings

Additionally, the housing industry is set to celebrate significant milestones, such as the WhatHouse? Awards 2026, which will honor outstanding achievements within the housing sector. This event is expected to gather over 1,200 key players, further emphasizing the health and vibrancy of the UK housing market.

In conclusion, the combination of increasing buyer activity, improved affordability, and supportive market conditions suggests a positive trajectory for the UK housing landscape in 2026. With stability on the horizon, this year could indeed usher in a new era of growth for the housing market.