Are UK property prices going up or down in 2026?

The honest answer is: it depends where you look.

A national average can be useful, but it can also hide what is really happening. In this walkthrough, I look at the council-level UK House Price Index data and compare the different trends across the country.

In London and parts of the south, prices are stagnating or falling. London is a particularly interesting example because the average property price is around £550,000, considerably higher than many areas in the North West, Yorkshire and the North East.

That difference matters. It affects the amount of capital you need, the number of properties you can buy and the level of diversification you can achieve. We recently completed on a two-bedroom property for £91,000. In some locations, you can be looking at prices ten times lower than London.

But even within a broad region, the picture changes again. The West Midlands showed average growth of around 1.5% in the data discussed, while Staffordshire was showing a 7.1% increase over the previous 12 months. Those are very different markets, despite being relatively close geographically.

Then there is Liverpool, where we invest. The annual price growth shown was 8.1%, with an average price of approximately £189,000. That is also what I am feeling on the ground. Competition is intense. We have sometimes offered 10–30% above the asking price and still failed to secure the properties we wanted.

Why is that happening? Because we are not usually competing for ordinary properties. We are looking for high-potential opportunities where there may be hidden value through a conversion, change of use or another property strategy.

This is the point many investors miss. There is not one UK property market. There are local markets, and they are being driven by different levels of demand, supply, employment, investment and available housing.

Property prices are cyclical. They rise and fall, although property tends to move through those cycles more slowly than some other investments. Early data may suggest a change in direction, but short-term movement should not replace proper analysis.

You need to study the specific area, understand the local numbers and then assess the individual property. The numbers, not the smell, decide a deal.

General information only. This is not financial, tax or legal advice, and the examples mentioned relate to specific investors and properties.

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