Margins slim down south

Midlands and North West 'will overtake London for house price growth'

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The Midlands and the North West of England are poised to outperform London for cumulative percentage house price growth since prices reached a low point after the 2008 financial crash, according to a housing market forecast.

Overall, house prices are expected to record “modest” percentage growth next year, rising by 2.5% annually across Britain in the fourth quarter of 2026, according to Hamptons.

But price growth in London is expected to be flat, with a 0.0% annual change in the fourth quarter of 2026 as the market digests tax changes, the property firm said.

It expects to see small price falls in the £1.9 million-plus house price bracket, which it said is likely to be offset by price growth in the mainstream market.