This is a great time of year for making plans. You can capitalise on that “New Year, new me” energy, whether that means signing up for a gym, starting a new diet or even preparing for your next home move.
If you are thinking of moving house, you may want to know whether house prices in 2026 will be heading up or down. Fortunately, our estate agents in Ilford have teamed up with our estate agents in Newbury Park to bring you the latest property price predictions.
Where is the UK housing market heading in 2026?
After rumours swirled about significant tax changes proposed for the Autumn Budget home movers held back, waiting to hear what the Chancellor would announce. Last year a Rightmove survey of over 10,000 people reported that one in five potential movers had decided to delay their plans. This led to a slowdown in the housing market in the months leading up to Christmas.
Fortunately, the Budget wasn’t quite as radical as many had expected and this has helped to rebuild confidence. As the New Year gathers pace, homeowners, landlords, investors and first-time buyers in the UK are returning to the property market.
Rightmove predicts that house prices will have risen by 2 per cent nationally by the end of 2026, while Londoners can expect a more modest rise of 1 per cent. This is not a dramatic increase, but it’s a positive sign that after five years of uncertainty the market is finally stabilising.
Why have London property prices changed so much?
While talking about London housing in general terms, it’s important to remember that the city’s property market is simply a collection of local submarkets. Each area has its own unique drivers of demand and price trends.
Since 2020 the capital’s housing market has been on a roller-coaster ride. It has switched from the highs of the post-pandemic boom to the lows of the non-doms’ exodus from prime central London. Prices have fluctuated as the trend for working from home was followed by calls to return to the office.
Land Registry figures show London’s property prices are still 5.1 per cent lower than they were in the boom year of 2022. But while values in central London have suffered in recent years, many of the capital’s outer boroughs have seen strong price increases.
What is happening to East London property values?
In December the Office for National Statistics recorded that prices in Havering increased by 5.3 per cent over the year, while Waltham Forest values rose by 4 per cent. Two sources (On the Market and Instagram Source) noted a rise of around 18 per cent in Ilford property values, although Redbridge experienced a 3.1 per cent fall.
Family-sized properties, good schools, open green spaces and excellent transport links attract buyers and renters to East London. It likely that property prices will continue to rise here and, as the year begins, we are already seeing more enquiries than we received in January 2025.
Will mortgages be cheaper this year?
In December, the Bank of England made a further cut in the bank rate (which affects the cost of mortgages). The rate is currently 3.75 per cent, down from 4 per cent, and further cuts are expected this year.
As the rate gradually reduces, mortgages will become more affordable. At the time of writing, Santander is offering 3.55 per cent for a 2-year fixed deal while NatWest offers 3.75 per cent for a 5-year fixed deal (against 60 per cent LTV).
Are there any other reasons for optimism?
Incomes are expected to grow faster than cost of living prices this year, so the balance between earnings and housing costs is set to improve. Higher wages will be particularly helpful for first time buyers saving for a deposit.
Inflation has risen, pushing up living expenses (including the cost of mortgages) and increasing the cost of house building, but economists claim it is now on a downward trajectory.
First time buyers will be happy to learn that the government has pledged to build more affordable homes in London. We are therefore likely to see an increase in schemes such as Pocket Living, which has created 90 discounted, one-bedroom homes in Walthamstow.
How can I get the best value from my home move?
If you are selling a property, an accurate property valuation is crucial, so why not ask our expert valuers for a free valuation? As a buyer, deep local knowledge is key to finding the right property investment.
At Oakland Estates we have been helping clients sell, buy and rent homes in East London since 1989. Why not get in touch with our friendly sales or letting teams to share your plans for the coming year?
Call us at 020 3972 7341 or email info@oaklandestates.co.uk.
If you are looking to buy, sell, or rent a property in Ilford, explore our latest listings below.
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