Yorkshire’s housing market in 2026: 14 expert predictions you need to know

I’m expecting a resurgence at the upper end of the market, where there’s been a lot of pent-up demand. The uncertainty in the run-up to the budget was actually worse than the outcome itself, which was relatively kind to the property market.

With interest rates coming down, I think prices will rise this year and people will become more comfortable with how the current government operates. Buyers are already starting to get on with decisions about moving.

Yorkshire, in particular, should perform better than many other parts of the country – we have real resilience, a strong work ethic and a diverse mix of industries that help retain talent and attract new people to the region.

Claire Kendall, partner at Richard Kendall Estate Agent in Wakefield

We approach 2026 with a pinch of optimism, but with a good dose of what could possibly come next. As a company we continue to strive forward, but mindful of the slight downturn in market conditions in the last quarter of 2025.

Despite valuation requests slowing in the run up to the New Year, viewing figures remained very strong and were comparative to the same time the year before, strongly suggesting that the homebuyers of 2026 were already looking for their next home.

The rental market is facing a different kind of shift. The Renters’ Rights Act lands on May 1, 2026. Landlords will need to understand the full impact of these changes in the early part of 2026 being critical for reviewing portfolios, checking compliance and deciding how best to adapt.

Overall, there is no reason to believe that 2026 will differ too much from what we have become accustomed to over the last 12 months for our marketplace.

The key to remain confident and steadfast, to keep calm and carry on like we always have done. The market appears resilient. Buyers are active. Renters are searching. Landlords are preparing for reform. We can stay confident by focusing on the fundamentals. The home moving choices made now will put you in the strongest position for the year ahead.

Mark Manning, managing director of Northern Estate Agencies Group, which owns Manning Stainton and Ryder & Dutton

I expect the market to start the year with a bit of a bang. Many would be movers have been sitting on their hands waiting for clarity on the likely impact of budget changes and they are now likely to press ahead, adding to an already healthy pipeline of demand.

First time buyers also remain a key driver across the market. Nationally, the “Bank of Mum and Dad” helped fund around £9.6bn of deposits for roughly 173,500 first time buyers in 2024, just over half of all first-time purchasers, and that level of family support is very evident locally.

Pricewise, 2025 was a year of modest growth, and I think in 2026 that we’ll see a return to more normal growth levels. Most national forecasters are suggesting UK price growth of around three-to-five per cent next year, and I think our region will sit towards the top end of this. I predict that we’ll see rises of between four-to-five per cent, reflecting stronger employment, relative affordability and ongoing undersupply of good family homes.

The main structural change this year will be in lettings, with the Renters’ Rights Act due to abolish new Section 21 “no-fault” evictions from May 1, 2026, moving the sector onto open ended periodic tenancies.

Some smaller landlords may choose to exit, but I expect most to adapt and rental demand to remain robust as many households continue to rent for longer.

Overall, I’m forecasting 2026 to be a year of balance; a little more stock coming to market, solid but sustainable buyer demand, realistic pricing and transaction volumes edging ahead of 2025, a healthy environment for people who simply want to move home.

Jonathan Morgan, partner at Zenko Properties in Leeds

The city centre residential market behaves very differently to traditional suburban markets. First time buyers are rare, chains are uncommon and there are plenty of inherent challenges.

The vagaries of leasehold tenure, which makes up about 99 per cent of all city centre properties, along with the implications of ground rent reviews, service charges and cladding remediation have meant that conditions have been less than perfect over the last few years. 2025 was a bit of a turning point for our sales team, however, and we effectively doubled our sales fee income last year over the year before.

Overall, we expect that the city centre market will be driven by owner-occupiers for whom mortgages will be slightly cheaper and who will have more and more choice as buildings continue to come out of the cladding blight.

Demand is likely to be focused on a combination of the more central schemes such as those along the river around Brewery Wharf and Dock Street, along with period properties such as Centaur House, No. 1 Dock Street, No. 2 Water Lane and Shearers House. We’re holding on to our hats for a quick start to 2026.

Andrew Beadnall, founder of Beadnall Copley in Wetherby, Harrogate and Ripon

Confidence has long been the single most important driver of the property market and in the months leading up to the much-anticipated autumn budget on November 26, it was in notably short supply.

Activity has begun to pick up since the Chancellor’s announcement. We have seen a marked increase in viewings, and there is growing optimism that this renewed positivity will carry into early 2026.

A rise in the number of homes coming to market would give hesitant sellers reassurance that they, too, will be able to find their next property. In turn, this could trigger a welcome increase in supply. Greater choice for buyers inevitably means more competition among sellers, underscoring the importance of presenting a property at its very best and pricing it realistically from the outset.

The past 12 months have made one trend abundantly clear: overpriced homes are lingering on the market, often for months, either failing to sell or requiring multiple price reductions. By contrast, well-priced homes are attracting strong interest and achieving excellent results, typically within the first four to six weeks of marketing.

A further interest rate cut in December improved affordability and will likely fuel additional demand. Looking ahead to 2026, we anticipate moderate growth in the sales market. Meanwhile, the ongoing impact of the Renters’ Reform Act appears to be pushing more landlords to exit the sector - a trend that is likely to continue placing upward pressure on rental prices.

Edward Hartshorne, managing director of Blenkin & Co., York

We’ll be relying on all our experience to guide clients through the premium property market in 2026. The new high-value surcharge is expected to create a cluster of prices just below the £2m mark, and it may slow price growth for properties sitting just above it.

Some owners may decide to restructure their estates, while others might be persuaded to downsize, putting long-loved country houses and larger townhouses back on the market - something that young families will welcome with open arms.

For decades, growth in prime areas has been driven by limited supply, and while this new tax landscape won’t change that fundamental dynamic, it may help to keep the market moving smoothly. As always, the dust will settle quickly, even after the turbulence of last autumn.

Our clients are savvy, the market is resilient and Yorkshire continues to offer something genuinely special: a superb quality of life paired with a thriving business environment that attracts buyers from across the country and beyond.

Harriet Naish-Bain, associate, GSC Grays

GSC Grays anticipate the first quarter of 2026 will be a particularly active marketplace, and the signs since the budget are already encouraging. There is unlikely to be upward pressure on values and appropriate pricing will remain key for sales to be achieved, creating momentum ahead of the traditional spring selling season. Providing the various stakeholders of the home buying process remain pragmatic, proactive and focused, we are optimistic for the next 12 months with positive and realism being the watch words for all concerned.

Ed Stoyle, head of residential sales at Savills Yorkshire

Savills research forecasts that average UK house prices will rise by two per cent in 2026, with stronger 3.5 per cent growth expected across Yorkshire and The Humber, reflecting continued demand in the region. Yorkshire’s enduring appeal as a place to live remains a defining feature of its market strength. Well-connected towns and cities offering excellent transport links to Edinburgh, Manchester and London, as well as access to the A1, alongside top-performing schools and beautiful scenery, is what continues to attract buyers and encourages long-term residency – setting the region apart from many others.

With the budget now behind us and buyer confidence improving, the slowdown seen in late 2025 should ease, paving the way for a stronger start to the year. While interest rate cuts may come more slowly than previously expected, they are still likely to support demand and price growth over the next five years – with Savills forecasting Yorkshire as one of the top reforming regions, seeing 28.8 per cent growth to 2030.

The post-pandemic price hike, which drove much of the UK’s regional growth over the past five years, has now largely worked its way through the system. Savills forecast now anticipates that affordability will once again become the key influence on house price performance.

For 2026, I expect we will see a positive start to the year, following a subdued November and December affected by the late budget. The key to a successful sale remains a realistic pricing strategy and proactive approach. Demand remains strong for high-quality homes, particularly those offering excellent connectivity and lifestyle benefits - qualities that continue to make Yorkshire such an attractive place to live, year after year.

Ben Pridden, agency director at North Yorkshire estate and land agency Hewetson and Johnson

Post budget, the country’s reaction relating to property specific policy seems to be one of relief. The clear exception to this is the rental investment market, which has all but dried up in many areas due to the endless, punitive changes to taxation and tenant’s rights.

There is no doubt some buyers will want more information on the nature of the “mansion” tax. It is our opinion that buyers will accept the additional taxation on their new home, on the basis that £2,500 per annum on a £2.25m home, over 10 years, will likely be dwarfed by its capital growth. Some may look to sellers to absorb some of this burden, but we do not see prices collapsing as a direct result of this policy.

Where there is demand, prices should hold. The market for houses above £2m has been challenging for some time now, and there is a definite correlation between successful sales and prudent pricing in this sector.

There have been some notable transactions in this bracket though, including a significant country house at £4m north of York which we advised on this summer. The mid and mainstream

markets have been much more robust. Hewetson and Johnson has seen strong interest in the north for homes between £300,000 and £1m with sales agreed throughout November.

We are looking forward to 2026 with a healthy dose of caution. It seems likely prices will remain flat. Rightmove’s most recent statistics report house prices are like the previous year and indeed to the market’s peak in 2022 of £293,274.

People’s reaction to the budget may well be positive where property is concerned, however the tax burden across the population is significant, and there is still a degree of economic

uncertainty which will influence families’ plans looking forward.

I have been selling prime homes for over 32 years, more than 20 of those in Yorkshire, and I believe there will continue to be a market for the region’s best houses. Yorkshire, Cumbria and the North East are our principal markets and include some of the most aspirational places to live in the UK, in my experience very little stops people wanting to make this their new home. Fair pricing and hard work will continue to pay dividends for our clients.

Matthew Limb, managing director of Limb Estate Agents, Brough, East Yorkshire

As I write this, I find myself somewhat conflicted. Working in the North East of England, the deferred introduction of the so-called ‘Mansion Tax’ - applicable to homes valued at £2m and above - is unlikely to have a significant direct impact on our local sales market.

That will not be the case in many other regions, where higher property values mean the measure will be felt more acutely. Any disruption to mobility elsewhere inevitably has a knock-on effect for all markets; after all, the country’s housing ecosystem is interconnected.

That said, there is potential that households in higher-value areas may increasingly look northwards for better value, should they be able to sell their existing homes. Time will tell whether this prompts greater interest in our region.

Turning to the rental sector, further regulation and higher taxation will undoubtedly present challenges for landlords. Yet those that remain in the market may ultimately benefit. A shrinking pool of rental stock, driven by some landlords choosing to exit, will result in rising rents albeit as an unintended consequence of policy. Once the dust from both the budget and the festive period settles, I am cautiously optimistic about the prospects for our local sales market. Buyers and sellers are likely to push forward with their plans.

Affordability will remain under stress due to the ongoing cost of living pressures and rising taxation, but with mortgage rates moderating and inflation projected to ease, a ‘new normal’ may emerge – one that supports steady, positive activity.

Locally, I expect modest price growth of around two per cent to four per cent over the year. For all of us with an interest in the property market, let’s hope that Santa brings an improvement in sentiment and a welcome dose of stability in the months ahead.

Patrick McCutcheon, head of residential at Dacre, Son & Hartley, which has 20 offices in West and North Yorkshire

Whilst political point scoring and the run up to the budget have caused a cloud of negativity to hang over much of the market since early summer, the reality is that sales have been occurring at a steady pace, but without the normal bruhaha and general chaff.

That said, there is unquestionably a proportion of buyers who have held back, pending clarity on future personal and property taxation. I expect the spring of 2026 to be positive, both in terms of sales and a choice of new stock. People’s life events mean the reality is that the market can only be held back for so long – all the more so if The Bank of England continues to tickle down base rates.

Oliver Bottomley, associate director of land and development at Vivly Living, the Yorkshire-based residential property builder and developer

While I don’t believe we will see massive house price increases due to the cost-of-living crisis and wages being pegged back by inflation, the natural generational cycle, which informs our developments, of first step on the ladder, next step along the ladder and then downsizing, will continue.

That means there will be a demand for quality family housing, which will strengthen if the economy improves. From a development and planning perspective, I believe it will be the year of the grey belt, low quality land within the green belt.

Grey belt arguments are easy wins for local councils that need to hit Government targets. I can also see more social housing focussed developments coming forward, as developers look to take advantage of the current government policy, which encourages growth in this sector.

Tony Wright, partner at Carter Jonas in Harrogate

With the political landscape now looking more settled following the budget at the end of November 2025, I expect to see a more balanced market in 2026, primarily driven by increased buyer confidence and a more stable economic outlook.

This will be beneficial for both buyers and sellers, creating an environment where transactions can proceed with greater confidence and transparency, encouraging people to enter the market, whether they be first time buyers or those looking to move up or down the property ladder.

Interest rates have (hopefully) topped out and there should be a steady downward trajectory over the next few months, creating a more competitive mortgage market. Buyers and sellers who have put off moving by adopting a wait-and-see approach, may now start to consider that the time is right to review their options and adopt a more motivated approach to move.

Overall, my outlook for 2026 is quietly optimistic with demand moving in the right direction, following a cautious 2025. I foresee an early return in activity as sellers and buyers adapt to a more even balance between supply and demand. My view is that the property market in Yorkshire is very much open for business and we could well be in for a busy few months of activity in the early part of 2026.

Our Lifestyle newsletter is a great weekend read

Nicola Spencer, managing director of Spencers estate agents, Sheffield

Another year of ups and downs in the world of property, just when we thought things couldn’t get any worse after the previous few years, here we are. The first half of 2025 saw signs of a glimmer of recovery and slowly through the spring, we felt some of the pressure lifting from a catastrophic few years of the Covid boom, the interest rate rise induced decline and change of government with hopes of a better year.

Alas, with press speculation rife and news each day reporting signs of recovery and green shoots and then caution, doom and a further potential crisis, the news of tax changes and a potential budget disaster forced many people to ground to reconsider their options.

Landlords have been in a state of constant anxiety with the Renters Rights Act promising to create chaos for landlords and agents alike and many excellent landlords made the hard decision to sell investment stock, which in our experience predominantly sold to first time buyers.

Nationally, rental supply has reportedly fallen by around 13 per cent compared with pre-pandemic levels, while demand remains much higher, which tells you everything about the pressure renters are still facing. Meanwhile, average UK house prices have hovered around three-to-five per cent below their 2022 peak, depending on region — not a crash, but definitely a wobble.

The mortgage market began to ease some restrictions with lenders offering slightly more competitive deals, however anyone with a high-rise apartment for sale in the city has had to accept plummeting values with the Building Safety Act complications, non-qualifying leaseholder stipulations, soaring legal costs, and mortgage lenders refusing to lend where service charges are high, or where they are located within reach of certain commercial premises.

Fast forward to autumn and the market died a sudden death at the hands of Rachel in accounts who starting to preach about property tax changes and landlord charges handing the market an early Christmas by pushing the autumn budget back by a month to the end of November. Fortunately, the actual budget didn’t match the speculation and we are hopeful (eternally) of a better year for 2026.