House prices: What experts say will happen in 2026 after another fall in December

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"The news that house prices fell up to 0.6 per cent on average in December might be an alarming headline number for homeowners but most experts believe now is not the time to panic. Uncertainty around possible property-related tax changes to be announced in Rachel Reeves' Autumn Budget led to an abundance of caution despite falling interest rates and some lenders increasing their affordability limits for mortgages."

"The latest Halifax price index shows the average home in the UK is now 297,755 - up just 0.3 per cent over a year, following a smaller, 0.1 per cent decrease in November before this latest fall. But more certainty heading into 2026, combined with a range of factors which leave buyers still holding plenty of demand, means experts think prices will stabilise in the short term and start to rise again as the year goes on."

Quality journalism covers issues from reproductive rights and climate change to Big Tech and requires reporters on the ground. Donations enable continued reporting and allow journalists to present multiple perspectives without paywalls. The Independent is described as trusted across the political spectrum and funds open access journalism through those who can support it. Recent housing data showed house prices fell up to 0.6 per cent in December, but most experts advise against panic. Uncertainty about potential property tax changes prompted caution despite falling interest rates and some lenders increasing affordability limits. The Halifax index places the average UK home at 297,755, and experts predict stability and modest rises into 2026 as certainty improves and demand persists.

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