Prices to rise 2% in 2026 as mortgage rates dip
Original Article Summary
House prices are expected to rise by 2% in 2026 fuelled by improved buyer affordability, Rightmove has predicted. The average two-year fixed rate mortgage is now 4.33% compared to 5.08% last year. With house prices being cheaper than a year ago, rising average wages and a relaxing of lending criteria, activity is expected to rebound […] The post Prices to rise 2% in 2026 as mortgage rates dip appeared first on PropertyWire.
PropMatch Curated Analysis
Rightmove predicts 2% house price growth in 2026 driven by improved affordability from lower mortgage rates (4.33% vs 5.08% last year), relaxed lending criteria, and wage growth. December 2025 prices fell 1.8%, ending the year 0.6% lower than 2024.
Investor Relevance
Critical for investment timing decisions as improved affordability conditions suggest increased buyer activity and modest capital growth ahead. Lower borrowing costs improve investment returns while relaxed lending criteria may expand the buyer pool for exits.
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