The UK property market is poised for a period of stable, measured improvement throughout 2026, according to a leading mortgage specialist, offering favourable conditions for buyers without the extremes of the recent past.
A Balanced Outlook for Buyers
Sam Fox, founder of The UK Mortgage Centre, stated that the coming year should be a strong one for those looking to purchase a home. He cites a combination of falling interest rates, a gradual easing of affordability pressures, and a wave of innovative new mortgage products entering the market as key supportive factors.
"2026 should be a great year to buy a property," Fox said. "With interest rates dropping and lenders releasing new products to the market, affordability and availability should increase." However, he tempered expectations, warning that the era of ultra-cheap borrowing and explosive price hikes is firmly in the past. "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."
Regional Variations and Modest Price Rises
Fox anticipates modest house price growth of between three and five per cent nationally over the year, but stresses that performance will vary sharply across the country. Areas in the north of England, Scotland, and Wales are likely to see stronger growth compared to London and the South East.
This divergence is largely attributed to persistent affordability constraints in the capital and ongoing supply shortages in more affordable regions. "Some regions will see stronger growth simply because prices are lower to begin with and demand remains robust," Fox explained. He also expects transaction levels to rise following a relatively stagnant period for sales.
"We will be seeing an increase in house sales compared to the current situation, which has been pretty stagnant," he confirmed. "The main driver will be lenders coming to the market with better products that boost the number of potential buyers."
Realistic Expectations on Rates and Deals
While borrowing costs are predicted to fall, Fox cautions that the pace will be limited by inflation, which remains above the Bank of England's 2% target. He explicitly ruled out a return to the historic lows seen during the pandemic.
"Don't expect rates to fall to anything like they were during Covid, when we saw 0.1 per cent. That was unprecedented," he advised. "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."
On pricing, he warned buyers not to anticipate widespread bargains, although moderate growth may mean properties stay listed longer, encouraging sellers to be more realistic. He highlighted regional markets and new lender innovations—such as expanded 100% loan-to-value mortgages—as presenting the best opportunities, particularly for first-time buyers.
"Ultimately, supply and demand will continue to drive prices," Fox concluded. "For first-time buyers, it's often better to get onto the ladder sooner rather than wait endlessly for a perfect, affordable home."
Five Essential Tips for Securing a Mortgage in 2026
1. Improve Your Credit Profile Early
Check your credit report well in advance of any application and correct errors. Reduce debts, ensure all payments are timely, and avoid new credit applications. A stronger score can unlock better rates.
2. Look Beyond Headline Rates
Don't fixate solely on the advertised interest rate. Consider arrangement fees, incentives, early repayment charges, and product flexibility. The cheapest-looking deal may not be the best long-term fit.
3. Secure an Agreement in Principle
Obtaining this before you start viewing homes demonstrates seriousness to sellers and clarifies your budget early, helping you move quickly in a stabilising market.
4. Consider Longer-Term Fixed Rates
With rates stabilising, longer fixes of five or ten years can offer valuable budgeting certainty and protection against future volatility.
5. Use a Qualified Mortgage Adviser
An experienced adviser can navigate evolving lender criteria, new products, and specialist schemes, often accessing deals not available directly and smoothing the application process.
