UK house prices are expected to rise 1.3% in 2026, below projected inflation, according to the median of a Reuters poll of 16 property-market experts conducted between 7 and 18 September. The median points to 2% in 2027 and 3.3% in 2028.

The estimates are weaker than the June survey, which had pencilled in 1.8% this year and 3% in each of the following two years. JLL’s Marcus Dixon said elevated mortgage rates and a lack of stimulus leave prices broadly flat, with only modest increases possibly appearing from 2027.

British inflation rose to 3.1% in August, a five-month high. A separate Reuters poll sees the annual average at 3.1% in 2026, then 2.5% in 2027 and 1.9% in 2028. The Bank of England left borrowing costs unchanged on Thursday; Governor Andrew Bailey warned that a prolonged Middle East conflict may require tighter policy.

For London, respondents forecast a 1.4% fall in 2026 and a 0.9% rebound in 2027, also below June’s survey. The average asking price in the capital was £646,451 in August, according to the Rightmove index cited by Reuters, a threshold beyond many first-time buyers.

National rents are expected to rise 3% in 2026 and 2027 and 2.8% in 2028. CEBR’s Liam Daly links the increase to a shrinking pool of landlords and to borrowing costs that push households into renting. Mortgage approvals for house purchase in July were the lowest since January 2024.

The Royal Institution of Chartered Surveyors has signalled that the slowdown in demand is levelling off, but Barratt Redrow, the country’s biggest housebuilder, cut its completions target. The percentages are a poll median, not an official forecast. Local markets can diverge widely from the national average.

Image: Victorian terraces, north London / Nigel Mykura / geograph.org.uk / Wikimedia Commons, CC BY-SA 2.0. A street, not a price forecast. Cropped to 16:9.

Source consulted: British home price increases to lag inflation this year and next | Reuters; Statistics | Bank of England.