Property forecasts for 2026
While HD Marketing doesn’t have a crystal ball, we do have enough data to speculate what's in store for the 2026 property market. To set the scene, however, we do need to rewind a little.
The 2025 Autumn Budget was a damp squib rather than a big bang, with fringe changes not taking effect until 2027 and 2028. The ‘light touch’ on property will boost the market and improve confidence levels moving forwards, especially as buyers won’t face higher stamp duty bills.
House prices – on the up?
The obsession with house prices will continue in 2026 and rightly so. With many onward moves dependent on how much a home will sell for – and how much a new one might cost – the industry banks on positive sentiment.
The end of a year always brings a glut of house price predictions and Rightmove was one of the first to stick its head above the parapet. The portal, which concentrates on asking prices and not final sold prices, feels the asking price for new instructions in 2026 will rise 2%.
The Halifax forecasts sold house prices to rise between 1% and 3% in 2026, with improving affordability, while the Nationwide is more bullish. The latter predicts UK house prices will increase between 2% and 4% in the coming 12 months.
Mortgages: turning a corner
Some of the improving affordability alluded to by the Halifax lies with mortgage lenders and there is good news. In late 2025, the Financial Conduct Authority set out plans to improve access to mortgages for marginalised home buyers. It wants lenders to offer more flexible home loans to groups including first-time buyers and long-term renters, the self employed, older borrowers, people living in tied accommodation, PhD students and carers.
So, what will the mortgage market look like while we wait for reforms? UK Finance paints an improving picture. Although it says there will be around 10,000 fewer transactions in 2026, compared to 2025, there will be a 4% rise in lending.
Tembo Mortgages weighed in with its own forecasts, looking at the holistic picture. Inflation? It expects this to fall back to 2.5% by the end of 2026. As for the base rate, it predicts the Bank of England could slash this to as low as 3.25% by December 2026. Both factors will influence where mortgage rates head – with the possibility we could see rates below 3.5% by early 2026.
This is superb news for movers seeking their first mortgage, homeowners needing to refinance to move up the property ladder and those whose fixed-rate mortgage is due to expire in 2026.
Construction turning a corner
The general consensus is 2025 was a disappointing year for the construction sector but better times are forecast. The latest monthly construction update from the Department for Business & Trade expects total construction output to increase 2.8% in 2026. When it comes to the new housing sector in particular, we can expect an increase of 4.9% in 2026.
New build reform
Improving buyer prospects and increasing construction output will fill the hearts of housebuilders with hope, although they should be as busy behind the scenes as they are in sales centres. The long awaited Future Home Standard legislation is imminently expected, with implementation possible within months.
The shift away from gas boilers to renewable power sources, such as heat pumps and solar panels, will need managing alongside the incoming Home Energy Model and SAP 10.3 software. There will also be a greater focus on heat loss and overheating.
New build reform doesn’t stop there. At the time of writing, The Planning and Infrastructure Bill was days away from gaining Royal Assent and becoming an Act. The industry hopes promises to make it easier and quicker to gain approval come to fruition in 2026.
Additionally, 2026 should see the Government publish its roadmap for buying and selling reform, with the consultation closing on 29th December 2025. The outline intentions are designed to quicken the home moving process for all involved and with new builds at the top of the chain, buying from a housebuilder should become the fastest route to a new home.
Renters’ Rights Act will reshape lettings
It may have taken more than five years to reform the private rental sector but 2026 will finally become the year of change. Landlords and their letting agents will have four months to prepare for the first phase of new legislation, which will take effect on 1st May 2026. This includes:
Ban on Section 21 notices, with Section 8 notices the only way for landlords to regain possession of their property
Fixed tenancies automatically switching to periodic ‘rolling’ tenancies
A Government-issued information sheet that needs issuing to all tenants
Ban on discrimination against tenants who are in receipt of benefits and who have children
Rent increases that are limited to once annually via a Section 13 notice
An end to bidding wars that forces rents up, with the advertised monthly rent the final rent that is taken
A ban on landlords taking upfront payments of more than one months’ rent
A set procedure when handling a tenant’s request to keep a pet
The creation of a private rental sector database and ombudsman – both of which will be compulsory for landlords to sign up to
Preparing now for the long term
The lettings sector will also start preparing for the introduction of a new Decent Homes Standard, which will include the application of Awaab’s Law. The Act also spells out the Government’s intention to change the minimum EPC rating for buy-to-let properties – this will upgrade from E to C for all newly agreed tenancies in 2028, and will apply to existing tenancies in 2030.
Educate & entice via marketing
It's clear housebuilders and agents have a huge role to play in educating both landlords and tenants regarding the forthcoming changes. Well-crafted, easy-to-understand marketing campaigns should help ease the transition.
Housebuilders also have a huge opportunity ahead, with their energy-efficient and low maintenance homes ideal for the energy-conscious owner-occupier and the evolving private rental sector. A new home offers a compliance ready investment opportunity and this should be a key message communicated across marketing touchpoints.
If you would like help with promoting 2026’s key changes to home movers, as well as reaching genuine buyers in a more buoyant market, please contact HD Marketing.