House prices to rise in 2026 but there's good news for first-time buyers too

House prices are set to rise in 2026 - but there is still good news for first-time buyers as experts at property website Rightmove have revealed their predictions for the housing market over the next 12 months.

The UK housing market looks "set to improve", with "more people likely to make their move and house prices showing modest growth", says the home buying experts. "Affordability is improving, and buyers and sellers are making new plans following the tax changes announced in the Budget," they said.

However, the strength of the market will depend on where you live, Rightmove said, and what type of property you own - or want to buy. A spokesperson summed it up saying "lower priced areas will see more movement, while higher priced regions may feel the effects of the Budget changes".

"Some first-time buyers could take advantage of 2026 market conditions due to a good choice of available homes for sale, average wage growth outpacing property prices and lower mortgage rates," they went on. "Meanwhile, the introduction of a mansion tax coming into place in 2028 is likely to create a sluggish top-end of the market next year.

What will happen to house prices in 2026?

Rightmove's house price predictions for 2026 suggest new-seller asking prices will rise by 2% by the end of the year. "While this represents positive growth, it also reflects a market finding its balance after a few years of economic uncertainty and a quieter market at the end of 2025," the spokesperson went on.

They added: "Mortgage lenders have been looking at ways to loosen their lending criteria to help people responsibly borrow more. We predict that the increased spending power buyers have will boost property prices slightly.

"However, house price growth will remain behind average wage growth and inflation, making homes more affordable in real terms."

Colleen Babcock, Rightmove property expert, said: "I think next year 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 of the way."

The Rightmove house price rise predictions for 2026 by region

The experts said they expect to see "particularly strong regional variations in house prices". Scotland, Wales and northern England are forecast to perform more strongly than other areas, with better affordability in these regions, combined with a healthier balance between supply and demand.

London and southern England prices are expected to lag behind the rest of the country, they said, as they adjust to the stamp duty changes that came into effect in April 2025. London house price predictions suggest slower growth than other parts of the country – partly because the upcoming mansion tax will disproportionately affect the capital and the south of England.

House price rises by region:

• UK: +2%
• London: +1%
• Scotland: +3%
• Wales: +3%

Colleen added: "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. I also think the market conditions next year will favour typical first-time buyers over those at the top-end of the market."