UK house prices: first-time buyers ‘will drive 2026 sales’ amid interest rate cuts

Dec 31, 2025 - 13:00
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UK house prices: first-time buyers ‘will drive 2026 sales’ amid interest rate cuts

Rent rises likely to slow after rapid increases in recent years, lenders and estate agents forecast

First-time buyers are expected to drive the UK housing market in 2026, with further interest rate cuts likely to improve stretched affordability.

The for-sale market should accelerate moderately, with prices rising by 2% to 4%, while rent rises are likely to slow from the rapid increases of recent years, according to lenders and estate agents.

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