By Robert Cumber, Property and Retro Writer
Published 26th Jan 2026, 10:49 GMT
UK Property Expert Predicts Top Five Regions for House Price Growth in 2026
A leading property expert has outlined his predictions for the areas of the UK most likely to experience house price growth in 2026. Mish Liyanage, founder of Mistoria Estate Agents, suggests that regions outside the traditionally expensive southern parts of the country are poised for the most significant increases.
However, Mr Liyanage issues a stark warning: the UK must urgently accelerate its housebuilding programme to meet demand and support sustainable, long-term growth in the property market.
Affordability Drives Regional Market Shifts
"As the UK property market shifts into 2026, forecasts suggest that modest but meaningful house price growth will emerge, especially outside traditionally expensive southern regions," said Mr Liyanage.
"With affordability improving and demand strong in many regional markets, certain areas are well-positioned to outperform. The success of these markets in 2026 still hinges on one crucial factor: whether enough new, affordable homes are built."
He emphasised that without a significant expansion in housing supply, price pressures could remain elevated even in areas with strong demand, highlighting the urgent need for more home construction.
Across these regions, affordability is a central theme. With national house price growth expected to be modest overall, markets where buyers have clearer access to finance and face limited housing stock are better placed to see growth.
"Affordability constraints have made higher-priced southern markets, particularly London, less dynamic, while northern and mid-market regions continue to attract demand due to better value," Mr Liyanage explained.
The Five Areas Tipped for Growth in 2026
Here are the five areas of the UK where Mish Liyanage predicts house prices are most likely to rise in 2026, along with the reasons behind his forecasts.
1. Scotland
Scotland stands out as a strong contender for house price growth this year. Zoopla's 2026 forecast lists several Scottish postcodes, including Motherwell and Glasgow, among the top areas for price increases.
These markets benefit from strong affordability, improving economic conditions, and continued demand for urban living, while remaining far cheaper than many southern English cities.
2. North West
The North West continues to be one of the strongest-performing regions in the UK housing market. Zoopla data highlights several North West postcodes, including Wigan and Liverpool, as among those with the highest house price growth prospects in 2026.
These areas benefit from relatively affordable entry prices compared with the national average, steady buyer demand, and strong transport links to major employment centres such as Manchester. With prices starting lower, there is greater scope for growth as affordability improves.
3. West Midlands
The West Midlands, particularly Birmingham and surrounding commuter towns, remains a key hotspot. Regional forecasts suggest above-average price growth as buyers seek better value compared with London and the South East.
Ongoing investment in infrastructure and regeneration projects continues to boost confidence, while easing mortgage pressures and modest wage growth are expected to help sustain demand.
4. Yorkshire
Yorkshire plays a central role in the 2026 housing outlook. Cities such as Leeds and towns like Halifax are experiencing quick sale times and limited price reductions, signalling strong demand.
The region's relatively balanced house prices in relation to local incomes make it attractive to both first-time buyers and investors. Data from Nationwide and Zoopla points to consistent growth, supported by strong transport links, diverse job markets, and lifestyle appeal.
5. Wales
Wales is emerging as a notable region for potential house price growth in 2026. Areas such as Cardiff and Swansea are attracting attention due to their affordability and quality of life.
Improved transport connectivity and ongoing urban development projects are enhancing the appeal of Welsh cities, drawing buyers from more expensive regions. The combination of lower entry prices and growing demand positions Wales for positive market movement.
The overarching message from Mr Liyanage is clear: while these five regions show strong potential for growth, the UK's housing market future depends critically on addressing the supply shortage to ensure sustainable and accessible property price increases across the country.
