With signs of slowing growth and falling mortgage rates, many are wondering if the UK and US housing markets are cooling in 2026. This page explores the latest trends, regional differences, and what it means for buyers and investors. Curious about affordability, regional shifts, or future outlooks? Keep reading for answers to your top questions.
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Are UK and US housing markets really cooling down in 2026?
Yes, both the UK and US housing markets are showing signs of slowing growth in 2026. UK house prices rose modestly in November, with regional disparities—declines in London but gains elsewhere. In the US, forecasts predict a gradual reset with slower price increases and improved affordability, as mortgage rates stabilize near 6%.
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What are the regional differences in UK house prices this year?
UK house prices are experiencing a clear north-south divide. While London has seen declines, northern regions like the North East and Yorkshire are seeing price gains. This regional disparity is driven by factors like affordability, local economic conditions, and changing buyer preferences.
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Will mortgage rates stay low in the US and UK?
Mortgage rates in both countries have decreased from their peaks earlier in 2025. UK rates have fallen below 4%, and US rates are stabilizing around 6.2%. While rates are lower than last year, experts suggest they will remain in the low-6% range in the US, limiting rapid rebounds but supporting market activity.
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How will housing affordability change in 2026?
Housing affordability is improving in both the UK and US due to falling mortgage rates and slower price growth. In the UK, first-time buyers are in their strongest position since 2015, with mortgage costs at their lowest in three years. In the US, wages are beginning to outpace home prices, making homeownership more accessible.
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What does the future hold for the UK and US housing markets?
Experts forecast a cautious recovery with slower price growth and increased market stability. While the UK sees regional disparities, the US is expected to experience a 'Great Housing Reset' with better affordability and steady sales. Overall, both markets are moving toward a more balanced environment in 2026.