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MNN UK · December 15, 2025 · 1 min read

UK house prices may rise up to 4% in 2026 as interest rates ease

What happened: Nationwide forecasts UK house prices could increase by 2-4% in 2026, supported by a slight drop in interest rates and improving affordability. The FCA also plans measures to assist first-time buyers and the self-employed.

Why it matters:

  • Rising house prices could affect affordability for buyers, especially first-timers.
  • Lower interest rates and FCA support may help more people enter the property market.

MNN Take: Gradual income growth combined with easing interest rates is expected to strengthen the housing market, though affordability challenges remain for some buyers.

Sources: Guardian UK