Home costs are anticipated to rise by 2% in 2026 fuelled by improved purchaser affordability, Rightmove has predicted.
The common two-year mounted charge mortgage is now 4.33% in comparison with 5.08% final yr.
With home costs being cheaper than a yr in the past, rising common wages and a calming of lending standards, exercise is anticipated to rebound after what has been a subdued second half of 2025.
Matt Smith, Rightmove’s mortgage skilled, mentioned: “We’re anticipating to finish the yr with a Financial institution Fee lower, which might be good for confidence heading into the Rightmove Boxing Day Bounce.
“It’s unlikely that it’ll trigger a lot motion in mortgage charges – the markets are very a lot anticipating December’s lower to go forward, and lenders have proven their hand early, slicing charges and competing to safe end-of-year enterprise.
“The headline is that home-movers will likely be getting into 2026 cheaper common mortgage charges than they had been at the start of 2025, serving to affordability.
“Those that are seeing barely decrease home costs of their space in comparison with final yr and should have additionally had an end-of-year pay rise, will see their affordability improved additional.
“Many home-movers may also see that the quantity that they will borrow has elevated, as lender have been rolling out the Mortgage-To-Revenue and stress charge modifications that had been permitted by the regulator earlier this yr.”
Common new vendor asking costs fell by 1.8% (-£6,695) in December £358,138.
This bigger than common December drop signifies that costs are 0.6% (-£2,059) decrease on the finish of 2025 than in 2024.
On the upside, there are early indicators of post-Funds rebound, with variety of top-end London sellers up by 24% week-on-week.
Colleen Babcock, property skilled at Rightmove, mentioned: “Lower cost development supported purchaser affordability and drove exercise within the first half of the yr, even after the April stamp responsibility deadline in England.
“Within the second half of 2025, uncertainty attributable to rumours of property tax modifications in November’s Funds swirled, some from as early as August.
“This had an influence on pricing and exercise, as sellers tried to entice nervous patrons. The market will quickly profit from the standard increase in home-moving exercise from Boxing Day.
“Rightmove’s Boxing Day Bounce is an annual occasion the place we see many start or resume their plans to maneuver after the distraction of Christmas.
“With the turkey and trimmings barely off the desk, annually we see folks heading straight to Rightmove to browse the contemporary listings on the market and picture how completely different subsequent Christmas might look.”
