UK house prices set to grow 2-4% in 2026, says Nationwide

(Sharecast News) - UK house prices are expected to grow by 2 - 4% next year as affordability for buyers improves, building society Nationwide said on Monday.

The lender said it expected housing market activity to strengthen "a little further" as income growth outpaces house price growth and amid a "modest decline in interest rates".

"The changes to property taxes announced in the Budget are unlikely to have a significant impact on the market. The high value council tax surcharge is not being introduced until April 2028 and will apply to less than 1% of properties in England and around 3% in London," said Nationwide's chief economist Robert Gardner in an outlook for 2026.

"The increase in taxes on income from properties may dampen buy-to-let activity further and hold down the supply of new rental properties coming onto the market, which could in turn maintain some upward pressure on private rental growth."

Reporting by Frank Prenesti for Sharecast.com