The start of the New Year means the predictions are in for what the UK housing market could have in store for us in 2026. It’s worth a look, whether you are an investor, a buyer, or a seller. Let’s dive in and see what we can expect. Then, if you need some help with guaranteed rent in Ealing or other parts of London, you can trust us.

Stability

One of the best pieces of news is the expectation that 2026 will be a more stable, recognisable year for the housing market. It has been a very tricky few years. Whether it was the impact of covid, financial challenges, or political instability, there has been volatility since 2019. The hope is things could finally be back to what we traditionally expect.

There are already some good signs that this will be the case. Critically, the base rate came down to 3.75% in December. As a result, it will hopefully be cheaper to arrange mortgages in 2026. That will be excellent for anyone looking to move. UK Finance is predicting we could see 1.2 million transactions in total this year and next.

FTBs

Another key forecast is the market will be most favourable to first time buyers. In fact, experts are predicting it will be “bottom up” instead of “top down”. So, it could be tough for prime markets while we see more movement and price growth in more affordable spots. A prediction from Zoopla’s Richard Donnell expects FTBs to be 40% of sales.

If you’re thinking about investing and guaranteed rent in Ealing, it’s important to note it has become a hotspot for FTBs. It’s very popular at the moment, capping off a strong decade of growth in this key demographic. Crucially, there have been a number of new schemes in areas like Southall to attract people looking to buy their first home.

Strong start to the year

There is also an estimate that the first quarter of 2026 will see a wave of activity. There are two key drivers here, including the drop in mortgage rates. On top of that, activity has been restrained for a few months. Inquiries fell to the lowest total for over 2 years in November because of political uncertainty about the Budget. So, all those people who put moves on hold will likely come back to the market now that everything is clearer.

Divide

Finally, the estimate is the current inverted North/South divide will remain in 2026. Traditionally, demand and house price growth is stronger in Southern England and London. However, we’ve had a few years now where it has been the opposite. For example, cities in the north such as Manchester and Liverpool have become powerhouses. The forecast is we will continue to see the highest demand and price growth in Northern England and Scotland as people target more affordable areas.

Learn why guaranteed rent in Ealing is a great option

Overall the forecast for the UK property market in 2026 is good. It should give all kinds of buyers more confidence. We’re happy to help too, supporting investors with exceptional services like guaranteed rent. We work with various properties, including houses, flats, and even HMOs.

So, get in touch if you want first rate services. We make it very easy to arrange guaranteed rent in Ealing and other areas. This can even include assistance with preparing properties, ensuring they are habitable and will be accepted on schemes. We’re happy to provide information about any aspect of the service too.