The UK housing market entered 2026 on a steadier footing, with early signs that price growth and buyer confidence may be finding renewed momentum after a softer end to last year. Nationwide’s latest House Price Index points to modest improvement in January, alongside encouraging signals on affordability that continue to shape buyer behaviour.
Property experts and professionals have shared their reaction to the news.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:
“The start of 2026 saw a slight pick-up in annual house price growth, which rose to 1.0% in January, after slowing to 0.6% in December. Prices increased by 0.3% month on month in January, after taking account of seasonal effects.
Housing market activity also dipped at the end of 2025, most likely reflecting uncertainty around potential property tax changes ahead of the Budget. Nevertheless, the number of mortgages approved for house purchase remained close to the levels prevailing before the pandemic.
Housing market activity is likely to recover in the coming quarters, especially if the improving affordability trend seen last year (and explored further below) is maintained.
Nathan Emerson, CEO of Propertymark comments:
“It’s encouraging to see the housing market gathering pace as we head further into 2026. We have witnessed growing consumer confidence over the last twelve months, more competitive mortgage deals being offered by many lenders, and an increase in homes being placed for sale.
Although inflation continues to play influence on the Bank of England’s base rate decisions, as we progress towards the spring it is hoped we may see further measured base rate cuts, which could further help invigorate overall affordability for many people who may have been cautiously keeping check on the market for their prime moment to jump into the buying and selling process.”
Karen Noye, mortgage expert at Quilter comments:
“The latest Nationwide house price data reveals the market saw a small uptick in January, but it was far from a roaring start to the year. With prices rising by 0.3% month-on-month and 1.0% over the past year, activity remains relatively subdued.
“This caution is understandable. With two or three base rate cuts expected later this year, many buyers are only tentatively engaging, weighing up whether to move now or wait for slightly cheaper mortgage rates to feed through. As a result, demand is being delayed rather than cancelled, particularly among first-time buyers who remain highly sensitive to affordability pressures.
“Realistically, this means we are unlikely to see a period of rapid house price growth in the near future. Affordability constraints remain a hard limit on how far prices can run ahead, even as borrowing costs begin to ease.
“That said, this looks less like a market losing momentum and more like one in a holding pattern. Mortgage pricing has already improved compared with this time last year, and further rate cuts should gradually ease monthly repayment pressures. As confidence builds, demand is more likely to strengthen steadily through the year rather than surge all at once.”
Damien Jefferies, Founder of Jefferies London, commented:
“The UK housing market has started the year with real intent, leaving the traditional Christmas slowdown firmly in the rear-view mirror. Buyer confidence has returned quickly, activity levels are rising, and momentum is building across the country.
This renewed energy is being supported by improving affordability and falling borrowing costs, giving movers greater confidence to proceed with their plans.
In London in particular, we are seeing a clear uplift in enquiries, viewings and agreed offers, as buyers who delayed decisions last year return to the market. With conditions continuing to improve, 2026 is already shaping up to be a far more active and decisive year for the capital.”
Verona Frankish, CEO of Yopa, commented:
“It’s back to business for the UK property market with the seasonal slowdown in house prices seen during December now a distant memory.
The housing market has wanted no time in finding its stride again and we’re seeing both buyers and sellers engaging with a far greater level of confidence.
This uplift in market momentum is being driven by improving affordability, with borrowing costs continuing to ease and, as a result, 2026 is already shaping up to be a far busier year for bricks and mortar.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“The property market has bounced back fighting fit following the festive break, with the reduction in house prices seen during December giving way to positive growth in 2026.
This suggests that the nation’s homebuyers and sellers have wasted no time in putting their plans into motion, driven by improving affordability and the recent boost of a base rate cut.
It’s already shaping up to be a far stronger year for the market and one that should see a reduction in selling times, improvements to the prices being achieved and the overall volume of transactions taking place.”
Daniel Austin, CEO and co-founder at ASK Partners, said:
“Today’s modest rise in UK house prices points to underlying resilience, but momentum remains constrained by affordability pressures and a ‘higher for longer’ interest rate backdrop. While recent rate cuts signal easing inflation, they are unlikely to transform market conditions overnight. Mortgage pricing has improved, yet buyer and developer confidence remains fragile following a Budget that offered little direct stimulus for housing.
The market is increasingly being shaped by structural rather than cyclical forces. The UK’s forecast 1.4 per cent growth rate, relative outperformance versus the eurozone, and sustained interest from Gulf and Southeast Asian capital continue to support long-term confidence. However, mainstream buyer activity remains subdued, with demand instead flowing into structurally undersupplied rental markets, particularly build-to-rent and co-living in well-connected suburban and commuter locations.
While proposed planning and affordable housing reforms may improve scheme viability at the margin, elevated construction and financing costs will continue to pressure margins in the near term. A clearer downward path for rates towards the 3.5 per cent range would help unlock stalled projects. Until then, capital is favouring resilient, income-led segments such as logistics, data centres, storage and other operational real estate, with real estate debt offering an attractive way to generate secured income while managing downside risk in a still-cautious market.”
