The UK housing market is heading for a year of steady improvement rather than dramatic change in 2026.

Falling interest rates, easing affordability pressures and new mortgage products are expected to support buyers. I warn against expecting a return to ultra-cheap borrowing or runaway house price growth.

2026 should be a great year to buy a property. With interest rates dropping and lenders releasing new products to the market, affordability and availability should increase. But I’m not expecting a house price boom or a glut of mortgage rates like we saw a few years ago – the world has significantly moved on.

I predict modest house price growth of between three and five per cent over the year, with sharp regional differences. Areas in the north of England, Scotland and Wales are likely to outperform London and the South East, largely due to affordability constraints and ongoing supply shortages.

Some regions will see stronger growth simply because prices are lower to begin with and demand remains robust. Transaction levels are also expected to rise after a subdued period for sales.

A combination of easing mortgage rates, modest income growth and potential housing reforms should encourage more buyers back into the market.

We will be seeing an increase in house sales compared to the current situation, which has been pretty stagnant.

The main driver will be lenders coming to the market with better products that boost the number of potential buyers.

While rates are expected to fall gradually, inflation remains above the Bank of England’s 2 per cent target, limiting how quickly borrowing costs can come down.

Don’t expect rates to fall to anything like they were during Covid, when we saw 0.1 per cent. That was unprecedented. If you’re getting a rate of around three per cent, wrap your arms around it.

Historically, mortgage rates were once in double digits, so today’s levels still represent good value.

Warning against expecting widespread bargains.

“Buyers shouldn’t expect huge discounts although moderate growth means properties may stay on the market longer, forcing sellers to be realistic.

Regional markets are offering the best opportunities, particularly for first-time buyers. New housing registrations have been strongest in the North East, North West and Yorkshire, while London has seen declines. He also expects further innovation from lenders, including expanded 100 per cent loan-to-value mortgages and low-deposit schemes.

Ultimately, supply and demand will continue to drive prices. For first-time buyers, it’s often better to get onto the ladder sooner rather than wait endlessly for a perfect, affordable home.

Five tips for securing a mortgage in 2026
1. Improve your credit profile early

Check your credit report well before applying and correct any errors. Reduce outstanding debts, make all payments on time and avoid new credit applications. A stronger credit score can unlock lower rates and a wider choice of lenders in an increasingly competitive 2026 market.

2. Compare products beyond headline rates

Don’t focus solely on the advertised interest rate. Consider fees, incentives, early repayment charges and flexibility. In 2026, lenders are expected to offer more tailored products, so the cheapest-looking deal may not be the best long-term option for your circumstances.

3. Get a mortgage agreement in principle

Securing an agreement in principle before house hunting shows sellers you are serious and financially credible. It can also highlight affordability limits early, helping you refine your search and move quickly when the right property becomes available in a competitive but stable market.

4. Consider longer-term fixes for stability

With rates expected to stabilise rather than plunge, longer fixed-rate mortgages can offer certainty. Five- or even ten-year fixes may protect you from future volatility and make budgeting easier, especially if household costs remain unpredictable despite improving economic conditions.

5. Use a qualified mortgage adviser

An experienced mortgage adviser can navigate new products, low-deposit schemes and lender criteria. As the market evolves in 2026, professional advice can help you access deals not always available directly, saving money and reducing the risk of application delays or rejection.

Sam Fox is founder of UK Mortgage Centre.