Price growth is set to hold steady next year, with house prices rising by 2.5% across Great Britain in Q4 2026 as inflation cools and interest rates ease, according to the latest forecast from Hamptons.
Transaction volumes are expected to remain at 1.15 million in 2026, with affordability improvements balancing out economic and tax pressures.
Growth is forecast to slow from 2027, falling to 2.0% in the fourth quarter of 2027 and 1.5% in the same period in 2028.
According to data, prime markets are likely to remain subdued, with tax policy and uncertainty restricting movement and recovery.
Since house prices bottomed out in 2009, the East Midlands will have seen more price growth than London by next year, according to the latest forecast from Hamptons.
By the end of 2027, the North West and West Midlands are expected to overtake London too, marking a significant shift in the regional house price cycle.
Aneisha Beveridge, head of research at Hamptons, said: “The housing market has always mirrored the mood of the nation.
“While the headlines have been dominated by uncertainty, underneath it all, we’ve seen signs of resilience.
“Inflation is easing, mortgage rates are falling, and affordability is improving, which should support modest price growth next year.”
Beveridge added: “But it’s hard to ignore the growing drag of taxation and politics.
“London, which historically leads recoveries, is being held back by higher stamp duty and broader tax anxieties, locking some owners into their homes and others out of buying them.
“The next phase of the cycle will be shaped less by discretionary moves and more by pragmatism – with policy playing an increasingly central role in determining who moves, when, and where.”
She said: “At the same time, the balance of power is shifting: the Midlands is forecast to have seen more price growth than London since prices bottomed out after the 2008 financial crash.”
