The UK property market: 2026 state of play for investors

February 11, 2026

2025 was a year of growth fuelled by an improving economy and cheaper mortgage rates. Predictions of more growth on the horizon reaffirm that property is a better option for investors than savings accounts and other alternatives in 2026.

Many analysts speculated that 2026 would be the first year of a new growth cycle. The numbers so far back that up, and make it essential for investors to act sooner rather than later because of…

Record house price growth
Growth forecast for the next four years
Falling mortgage costs
Regional value is found in the North

We’ve gathered everything you need to know if you want to purchase UK buy-to-let property for sale in 2026!

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Record UK house prices at the start of 2026

The average UK house price passed £300,000 for the first time in January 2026, according to the latest Halifax data. That is growth of 0.7% month-on-month and is the fastest rate of growth since November 2024

This positive start to the year is backed up by recent HMRC data on 2025 transactions, reported by Savills. There were more than 1,212,000 house purchases in total last year, which is 10% more than we saw in 2024. Q4 2025 was the strongest end to the year since 2022, and broadly in line with the market highs seen in the years 2017-2019. Homes are selling, and the market is projected to grow over 2026.

“The housing market entered 2026 on a steady footing,” said Amanda Bryden, the head of mortgages at Halifax. “£300,000 is undoubtedly a milestone figure, and activity levels show a resilient market. All in all, we still think house prices are likely to edge up between 1% and 3% this year.”

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Growth forecast for the next four years

What about the future? In the near-term, Nationwide is predicting average property value growth of up to 4% this year, and Capital Economics predicts 3.5%. These are strong numbers and significantly higher than last year’s forecasts.

In the long term, the latest forecasts from Savills show good news for UK buy-to-let property investors when it comes to both property values and rental growth:

22.2% average property value growth by 2030
12% average rental growth by 2030

Tarrant Parsons, head of market research and analysis at the Royal Institution of Chartered Surveyors (RICS), commented on the improving market:

“There are tentative signs of a shift in sentiment. Near-term sales expectations have strengthened, and the twelve-month outlook has edged into more positive territory. The key test for 2026 will be whether borrowing costs ease on a sustained basis. If so, this could provide the catalyst needed to drive a recovery in buyer demand.”

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Falling mortgage costs

The falling cost of borrowing referenced by the RICS analyst was a key UK property trend of 2025. The Bank of England cut the base rate of interest four times last year, leading directly to mortgage costs falling for UK property buyers.

With the base rate at 3.75% as of February 2026, fixed mortgages are available at the cheapest rates seen since 2022. That has reduced the price of investing and means you need less money to invest in 2026 than you did in 2025.

Andrew Bailey, the governor of the Bank of England, has signalled that we should expect more rate cuts this year:

“We now think that inflation will fall back to around 2% by the spring. That’s good news. We need to make sure that inflation stays there, so we've held rates unchanged at 3.75% today. All going well, there should be scope for some further reduction in the Bank rate this year.”

If and when the rate is cut once or twice more in 2026, the cost of borrowing should fall even further, and property values are likely to increase.

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Where to buy property in 2026?

With all that in mind, this is a great time to invest in UK property and make the most of the market growth that is forecast in the years to come. 2026 and beyond will look especially positive for investors who buy property in the North.

The latest data from the Hometrack Cities Index shows that house price inflation is currently weakest in the South of England. For example, Liverpool (4.2%) and Manchester (2.4%) have grown much faster than London (-0.7%) in the last 12 months, according to Hometrack data released in Q1 2026.

Returning to Savills, we can see that the long-term growth patterns also favour the Northern regions up to 2030:

UK average – 22.2%
Yorkshire and the Humber – 28.8%
North West – 27.6%

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Want to buy UK investment property?

2026 is off to a strong start, and the future looks positive. This is the ideal time for investors to buy property and make the most of the coming market growth cycle. Discover our latest opportunities today by contacting our specialist property advisors!

The UK property market: 2026 state of play for investors

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