“2026 is now expected to mark a return to a more stable and recognisable housing market.”
– Nick Leeming – Jackson-Stops
House prices will rise between two and three per cent next year as normality returns to the UK housing market for the first time since the pre-covid era, according to new findings from national estate agent Jackson-Stops.
The chancellor’s recent Budget has now passed, easing immediate concerns around more severe wealth and property taxes. Combined with anticipated interest rate cuts, this is likely to give many vendors and buyers the confidence to move forward with their plans and make a move.
In January, it will be six years since the ‘Boris bounce’, the onset of covid, and a prolonged period of disruption and uncertainty in the housing market. The six-week closure of the housing market was followed by the race for space, boosted by the short-term stamp duty holiday. The 2022 emergency budget threw the housing market into turmoil as historically low interest rates soared and post-covid inflation took hold.
Unnaturally high price growth in coastal and rural Britain then began to shift, expedited by the sell-off of second homes following increased regulation on individual landlords and second home owners. 2024 and 2025 then included political instability around the general election and leading up to the Budget.
“Interest rates are expected to settle in the mid-threes, already factored in by many mortgage lenders,” Nick Leeming, Chairman of Jackson-Stops, said, “this improving outlook is helping to restore confidence across the market.”
“The first quarter of the year is set to be particularly busy, driven by pent-up demand that built ahead of the Budget and is expected to carry through into next year, reinforcing a spring bounce that should be more pronounced than the long-term norm.”
“While much of the industry was uneasy about the kite-flying in the run-up to the Budget, the final outcome was better than initially feared. This has created the conditions for an unexpected ‘Reeves rebound’, giving buyers the reassurance they needed to proceed with their plans and move forward.”
“Following almost six years of exceptional volatility driven by Covid, fiscal shocks and political uncertainty, 2026 is now expected to mark a return to a more stable and recognisable housing market.”