In Rightmove’s forecast for 2026, the firm said next year’s market would be similar to activity seen in the latter half of 2025 as buyer affordability improves and more homes are available for sale.
Rightmove said there would be regional variations, with some markets – such as Northern England, Wales and Scotland – performing better than London and the South of England due to affordability and supply.
First-time buyers to be the winners of next year’s housing market
Rightmove suggested that first-time buyers would have the most opportunities next year, benefitting from wage growth outpacing house price growth, along with improved affordability.
The firm said the number of homes up for sale would see the buyer’s market remain next year and give first-time buyers more negotiating power.
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It added that although average rents were still at record highs, the pace of increases had been slowing, which made it easier for aspiring homeowners to save a deposit. Rightmove said some would find that their mortgage is cheaper than their rent, especially if the 2% increase in property taxes for landlords is passed on to tenants.
First-time buyers will still face challenges getting onto the property ladder, Rightmove said, as mortgage rates are still relatively high and many will continue to rely on the Bank of Mum and Dad.
‘Mansion tax’ to dampen high-value market
Rightmove said the High Value Council Tax Surcharge on homes worth £2m and more will lead to “sluggishness and volatility at the top end of the housing market”.
This will only impact a fraction of the market – around 1% of homes are currently priced above £2m, and less than 0.5% of sales are in this price range.
However, sellers who want to find a buyer quickly may reduce their asking price below the £2m threshold or by enough to cover the annual surcharge.
Colleen Babcock, Rightmove’s property expert, said: “2026 will be a mix of some key property market themes continuing, and other new trends emerging. We expect many of those who put their moving plans on hold over the last few months will pick them back up again from Boxing Day and into the new year, now the Budget is out the way. We predict the market will look and feel very different depending on which area of Great Britain you’re in, and the type of property you’re looking to sell or buy, with big differences particularly between the South of England and the rest of Great Britain.
“The market conditions next year will favour typical first-time buyers over those at the top end of the market.”
