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The Guardian - UK
The Guardian - UK
Business
Lauren Almeida

UK house prices bounce back in January as analysts predict 2%-4% rise in 2026

United Kingdom Nationwide United States Rachel Reeves Robert Gardner Capital Economics
a close up picture of 'for sale' signs
Nationwide forecasts UK house prices to rise by 2% to 4% this year, while consultancy Capital Economics predicts a 3.5% rise for the year. Photograph: Neil Hall/EPA

UK house prices bounced back in January after a surprise fall at the end of last year, and are predicted to improve during 2026, according to the UK’s top mortgage lender.

The price of the average UK home rose by 0.3% in January, according to the lender Nationwide. That marked an improvement compared with December, when prices unexpectedly slipped by 0.4% in the weeks after Rachel Reeves’s budget in late November.

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