2025 has seen much activity including 4 base rate changes from the Bank of England (BoE) and revisions in affordability criteria allowing lenders to lend more. Overall, the UK housing market has shown much recent resilience and has entered 2026 on a steady footing.
House prices in 2026
According to consumer group Which experts agree that house prices will continue to slowly increase:
- Zoopla: 1.5%
- Rightmove: 2%
- Savills: 2%
- Hamptons: 2.5%
- Knight Frank: 3%
- Nationwide: 2-4%
Many believe there is pent-up demand after falling buyer confidence ahead of the last Budget, with many consumers delaying moves until the market had a more certain set of parameters. Now that the Budget has passed and the market is stable there remains plenty of choice for buyers.
Interest rate outlook
Since August 2024, the BoE has cut interest rates six times, bringing the base rate down from a high of 5.25% in August 2024 to 3.75% in December 2025 and February 2026. In their statement post the February rate meeting they commented:
“If the economy and the outlook for inflation evolve as we expect, there should be scope for some further cuts to Bank Rate this year. But we’ll have to judge the latest information and data at each of our meetings and set whatever interest rate is necessary to make sure that inflation stays low and stable.”
Separately, market-wide forecasts suggest a busy refinancing year. UK Finance’s mortgage market forecast for 2026 said around 1.8 million fixed-rate mortgages are due to come to an end in 2026, and it expects external remortgaging to rise to £77 billion (up 10% year-on-year), alongside £261 billion of product transfers (up 2%). This will encourage competition between Lenders and some expected positive deals appearing on the market.
Further regulatory changes in 2026
The FCA has announced that it will consult on further changes in the following areas:
- first-time buyers and underserved consumers
- later-life lenders
- innovation and disclosure
- protecting vulnerable consumers.
The FCA will start to consult the public on proposed rule changes in the four areas from early 2026 and aim to have the first rule changes in place later this year.
For borrowers however, their immediate focus is less about market predictions and more about comparing the real monthly cost of deals and checking their affordability criteria. We are experts at helping clients to find the best possible options for their circumstances. At Springtide Capital we monitor all market indicators closely. Speak to us today to see how we could help you find the solution that’s right for you.
Please contact us on 020 8154 7280
Sources:
https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp
https://www.which.co.uk/news/article/4-mortgage-and-property-predictions-for-2026-an9AT6W7pT94
https://www.bankofengland.co.uk/monetary-policy/the-interest-rate-bank-rate
https://www.fca.org.uk/news/press-releases/fca-sets-out-plans-help-build-mortgage-market-future