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flag UK house prices to rise 2.5% yearly by late 2026, with Midlands outperforming London due to affordability and tax policy.

flag UK house prices are forecast to rise 2.5% annually by Q4 2026, driven by improving affordability and falling mortgage rates, with transaction volumes stable at 1.15 million. flag London’s prices are expected to remain flat, while the East Midlands, West Midlands, and North West surpass London in cumulative growth since 2010, led by 94%, 90%, and 88% gains respectively. flag Tax policy, including a planned council tax surcharge on homes over £2 million starting in 2028, is seen as a key factor limiting high-end London growth and shifting momentum to the Midlands.

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