5 areas of the UK where house prices are expected to grow in 2026, and why

Mish Liyanage believes places outside the traditionally more expensive southern regions are set to see the biggest rises.

However, Mr Liyanage, founder of Mistoria Estate Agents, warns that the UK urgently needs to accelerate its housebuilding programme in order to meet demand and support sustainable growth.

He said: “As the UK property market shifts into 2026, forecasts suggest that modest but meaningful house price growth will emerge, especially outside traditionally expensive southern regions.

“With affordability improving and demand strong in many regional markets, certain areas are well-positioned to outperform.

“The success of these markets in 2026 still hinges on one crucial factor: whether enough new, affordable homes are built.

“Without significantly expanding housing supply, price pressures could remain elevated even in areas where demand is otherwise strong, underlining the urgent need to build more homes.”

”Across these regions, affordability is a central theme. With national house price growth expected to be modest overall, markets where buyers have clearer access to finance and limited housing stock are better placed to see growth.

“Affordability constraints have made higher-priced southern markets, particularly London, less dynamic, while northern and mid-market regions continue to attract demand due to better value.”

Here are the five areas of the UK where Mish Liyanage predicts house prices are most likely to rise in 2026, and why he has tipped them for growth.