UK house prices are projected to rise by 1.5% in 2026, with Scotland and parts of Northern England expected to deliver the strongest gains, while London and much of Southern England continue to underperform. The outlook comes from a new report published by property portal Zoopla.
Scotland’s Motherwell postcode area leads Zoopla’s nationwide rankings, with average home values forecast to increase by 3.4%. In England, Wigan is tipped for solid growth of around 3%, while Liverpool is expected to see prices climb by 3.5%, followed by Stoke-on-Trent with a projected rise of 2.8%.
In contrast, housing markets across London and Southern England remain near the bottom of the national league table. According to Zoopla, these regions are already recording modest price declines, driven by elevated housing supply and lingering uncertainty surrounding tax policy ahead of the autumn budget.
Zoopla noted that a sharp increase in the number of homes listed for sale has expanded buyer choice in these areas. Combined with higher stamp duty costs introduced in April 2025, this has contributed to a slight fall in average prices over the past year. Stamp duty, the tax charged on property transactions, had been temporarily reduced between September 2022 and April 2025.
London continues to face specific headwinds. West Central London, where average property prices stand at £711,140 ($952,856), ranks last in Zoopla’s analysis. Homes in the area are also expected to take more than twice as long to sell compared with the UK average of 39 days.
Despite these challenges, Zoopla believes activity in Southern England could improve in 2026 as affordability begins to stabilise following a prolonged period of market uncertainty. The report also suggests that better value is gradually returning to the London housing market after a decade of weaker-than-average price growth.
While many London neighbourhoods still trail the rest of the country, Zoopla said conditions have improved compared with recent years, creating selective opportunities for buyers seeking long-term value.
