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House prices in the UK could rise modestly in 2026, with forecasts suggesting growth of between 2% and 4%.
Improved affordability, driven by rising wages and falling interest rates, is expected to support demand.
A 4% increase would lift the average home price to nearly £284,000, according to current estimates.
Mortgage rates have been declining, making fixed-rate deals more attractive to buyers.
Regulators are also pushing for mortgage products that better reflect modern working patterns and income levels.