UK house prices: first-time buyers ‘will drive 2026 sales’ amid interest rate cuts

Rent rises likely to slow after rapid increases in recent years, lenders and estate agents forecast

First-time buyers are expected to drive the UK housing market in 2026, with further interest rate cuts likely to improve stretched affordability.

The for-sale market should accelerate moderately, with prices rising by 2% to 4%, while rent rises are likely to slow from the rapid increases of recent years, according to lenders and estate agents.