Amanda Bryden at Haifax admits it is hard to forecast what will happen next year with the uncertain economic outlook in the UK.
16th Dec 20250 552 2 minutes read David Callaghan
House prices are set to rise slowly by between 1% and 3% next year, according to a cautious projection from Halifax.
The lender says asking prices for properties will increase modestly during 2026, but warns that it is an uncertain forecast with economic factors had to predict.
Other Halifax market survey findings:
- Forecast uncertainty remains high given the wider economic backdrop
- UK housing market performed broadly in line with expectations over the last year
- Limited annual growth of 0.7% lifted the average property price to a new high of £299,892
- Market activity was influenced by stamp duty changes, but overall remained close to pre-pandemic levels
- Affordability still challenging, though easing mortgage rates and steady wage growth have supported buyer confidence
We expect house prices to rise modestly, by somewhere between 1% to 3%.”
Amanda Bryden, Head of Halifax Mortgages (main picture) says: “Looking ahead to 2026, we expect house prices to rise modestly, by somewhere between 1% to 3%.
“While wage growth is expected to slow and unemployment may edge higher, lower interest rates and easing inflation should help to gradually improve homebuyers’ purchasing power,” she says.
Challenging“The biggest talking point [in 2025] was the change to stamp duty thresholds in the spring, which led to a rush of buyers trying to beat the deadline. March was one of the busiest months ever for completed transactions, but this spike didn’t translate into a significant rise in prices, and activity levels soon returned to normal.
“While affordability remains challenging, the picture has improved compared to recent years, driven by a combination of above-inflation wage growth, lower interest rates and some expansion of eligibility criteria from mortgage lenders.”
Industry reaction
Mary-Lou Press, President, NAEA Propertymark
Mary-Lou Press, President of NAEA Propertymark, says: “As we look towards 2026, modest price growth appears achievable as affordability slowly improves.
“However, supporting a healthy housing market will require policies that strike the right balance for buyers, renters, and those providing much-needed homes.”
Robust“Despite the challenges faced over the past year, the housing market has shown considerable robustness, even with borrowing costs remaining elevated and consumer confidence under pressure,” she says.
“Greater affordability, supported by stronger wage growth relative to house prices and improved access to higher loan-to-value lending, has played a crucial role in keeping buyers active, particularly those entering the market for the first time.”
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TagsHalifax house prices 16th Dec 20250 552 2 minutes read David Callaghan Share Facebook X LinkedIn Share via Email
