Are UK house prices going up or down in 2026?
UK house prices are rising in the majority of cities. Of the 146 cities we tracked using HM Land Registry data (January 2026), 101 are seeing annual price growth, 44 are seeing prices fall, and 1 is unchanged. The average annual change across all cities is +1.3%.
However, the picture varies dramatically by location. Darlington is up 9.5% year-on-year, while Westminster and Kensington and Chelsea are both down 10.8%. The pattern is clear: affordable northern and Welsh cities are growing, while expensive London boroughs are falling.
Which UK cities are seeing the fastest house price growth?
Darlington tops the list with 9.5% annual growth, followed by Redbridge (7.2%) and Doncaster (6.9%). The fastest-growing cities are predominantly in the North of England, Wales, and the wider South East — areas where prices are still relatively affordable.
| City | Average price | Annual change |
|---|---|---|
| Darlington | £162,945 | +9.5% |
| Redbridge | £517,463 | +7.2% |
| Doncaster | £175,466 | +6.9% |
| Stafford | £262,262 | +6.7% |
| Warrington | £254,443 | +6.7% |
| Stevenage | £316,828 | +6.6% |
| Liverpool | £181,665 | +6.5% |
| Peterborough | £236,622 | +6.1% |
| Carlisle | £173,919 | +6.1% |
| Sunderland | £144,530 | +6.0% |
| Oldham | £213,743 | +5.9% |
| Newport | £228,431 | +5.9% |
| Basingstoke | £377,575 | +5.8% |
| Bridgend | £215,207 | +5.7% |
| Swansea | £206,689 | +5.5% |
Redbridge is a notable outlier — the only London borough in the top 15, with prices up 7.2% against a backdrop of falling prices across most of the capital.
Where are house prices falling in the UK?
Westminster and Kensington and Chelsea are seeing the sharpest declines, both down 10.8% year-on-year. Camden is close behind at -10.1%. The pattern is concentrated in prime central London, where prices peaked several years ago and have been correcting since.
| City | Average price | Annual change |
|---|---|---|
| Westminster | £912,812 | -10.8% |
| Kensington and Chelsea | £1,198,295 | -10.8% |
| Camden | £794,413 | -10.1% |
| Tower Hamlets | £464,488 | -9.5% |
| Hammersmith and Fulham | £729,613 | -8.5% |
| Newham | £401,544 | -6.1% |
| Lambeth | £546,264 | -4.8% |
| Aberdeen | £133,172 | -4.5% |
| Barnet | £588,123 | -4.2% |
| Hastings | £234,905 | -4.1% |
| Portsmouth | £245,571 | -4.1% |
| Wandsworth | £681,998 | -4.1% |
| Watford | £391,494 | -3.3% |
| Southampton | £233,574 | -3.1% |
| Brent | £552,414 | -2.7% |
Outside London, the falls are more modest. Aberdeen (-4.5%) continues a long-running decline linked to the oil and gas sector, while south coast cities like Hastings (-4.1%), Portsmouth (-4.1%), and Southampton (-3.1%) are seeing corrections after strong pandemic-era growth.
What does this mean for buyers and homeowners?
If you are buying your first home, the data suggests that affordable northern cities offer both the lowest entry prices and strong price growth — meaning your property could be worth more a year from now. Read our first-time buyer guide to get started.
If you are a homeowner in an area where prices are falling, it may affect your loan-to-value ratio and your ability to remortgage at competitive rates. Use our LTV calculator to check your current position.
For buy-to-let investors, rising prices in affordable cities could signal strong capital growth potential, but rental yields also need to be factored in. Use our mortgage calculator to model your monthly costs.
How does the Bank of England base rate affect house prices?
The Bank of England base rate influences mortgage rates, which in turn affect how much buyers can borrow. When rates are higher, borrowing is more expensive and buyer demand can soften — which tends to put downward pressure on prices, particularly in areas where properties are already expensive relative to local incomes.
The uneven pattern we are seeing — affordable cities rising while expensive cities fall — is partly explained by this dynamic. Buyers in affordable areas can still comfortably service their mortgage at current rates, while buyers in expensive areas are being squeezed.