Hamptons forecasts modest 2026 house price growth

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Hamptons forecasts modest 2026 house price growth

House prices are set to rise modestly next year by 2.5% across Great Britain in Q4 2026, Hamptons says.

It is also predicting that inflation will ease, and mortgage rates will be lower.

The firm says transactions should hold near 1.15 million as improving affordability counters economic and tax pressures.

However, the outlook becomes more fragile from 2027 when Hamptons thinks political uncertainty and higher borrowing costs will slow growth to 2% in Q4 2027 and 1.5% in 2028.

Modest house price rises

Aneisha Beveridge, the firm’s head of research, said: “The housing market has always mirrored the mood of the nation.

“While the headlines have been dominated by uncertainty, underneath it all, we’ve seen signs of resilience.

“Inflation is easing, mortgage rates are falling, and affordability is improving, which should support modest price growth next year.”

She added: “But it’s hard to ignore the growing drag of taxation and politics.

“London, which historically leads recoveries, is being held back by higher stamp duty and broader tax anxieties, locking some owners into their homes and others out of buying them.”

Base rate cuts predicted

Hamptons says that since prices hit their post-crash floor in 2009, the Midlands is on track to outperform London by next year.

The North West and West Midlands are also expected to pass the capital by the end of 2027.

Next year, the agency believes inflation will fall faster than expected, allowing two or three base rate cuts.

By the end of 2026, Hamptons expects the Bank Rate to settle around 3.25%, with typical mortgage deals stabilising near 4%.

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