UK House Prices Showing Early 2026 Rebound

UK House Prices Edge Up After a Subdued 2025

At the start of 2026, the UK housing market is showing signs of renewed momentum following an extended period of subdued growth in 2025. According to data from Nationwide Building Society, house prices continued to rise in February, with average UK home values increasing around 0.4 % month-on-month and marking six consecutive months of gains. The year-on-year growth rate held steady at roughly 3.9 %, underlining the market’s resilience despite persistent affordability constraints and ongoing mortgage rate pressures.

Underlying UK real estate Market Influences

Several key factors are shaping the current market. Improved affordability, supported by wage growth outpacing property price increases and a modest decline in mortgage costs, has helped sustain buyer interest. First-time buyers, in particular, have maintained a higher share of home purchases, aided by easier credit conditions. While the end of 2025 saw some price weakness and market hesitation, early 2026 data indicate a resurgence in buyer activity and stabilisation of supply conditions.

Regional Divergence and 2026 Outlook

Regional price movements are uneven. Northern England, Scotland, and Northern Ireland have displayed stronger price responses, whereas London and the South East continue to moderate headline growth given their higher base prices and structural market dynamics. Looking ahead, industry projections suggest that overall UK house prices could rise between 2 % and 4 % over the course of 2026, underpinned by anticipated interest rate cuts and gradual improvements in buyer affordability.

As reported by experts at International Investment, the early 2026 rebound in UK house prices reflects a market navigating through uncertainty and recovering buyer confidence. With mortgage conditions easing and household incomes strengthening relative to housing costs, the sector is poised for measured but sustained recovery through the year.