Rightmove picks next year’s housing market ‘winners and losers’

The different sectors and regions of the housing market are likely to experience sharply contrasting fortunes next year.

House prices will rise by a modest 2% next year but there will be clear winners and losers, with variable conditions likely to favour some sectors and regions over others, according to Rightmove’s Head of Partner Marketing, Colleen Babcock (pictured).

She says: “2026 will be a mix of some key property market themes continuing, and other new trends emerging.”

We predict the market will look and feel very different depending on which area of Great Britain you’re in.”

She adds: “We predict the market will look and feel very different depending on which area of Great Britain you’re in, and the type of property you’re looking to sell or buy, with big differences particularly between the south of England and the rest of Great Britain.

She expects typical first-time buyers to be among the biggest winners next year. Average wage growth is expected to outpace house price growth, improving affordability, at the same time as the high number of homes for sale gives buyers greater choice and negotiating power. In addition, first-time buyers will also be able to borrow more following the loosening of loan-to-income limits and stress rate testing.

In contrast, Babcock is expecting the top end of the housing market to be more challenging. A new Mansion Tax on homes valued at £2 million or more is due to take effect from April 2028, and that will weigh on activity in the sector, despite affecting only a very small proportion of transactions. Some sellers, she suggests, will therefore choose to price more competitively.

Regionally, she is forecasting lower-priced areas to perform best and Scotland, Wales and the North of England to outperform London and the South of England, where higher values and stretched affordability will continue to limit growth.