UK Residential Forecasts Q4 2026

Overview

Higher borrowing costs are reshaping the UK residential market, creating divergent conditions across the rental and sales sectors. CBRE’s latest forecasts examine the outlook for rents, house prices, and London new home sales, highlighting how affordability pressures and persistent supply shortages will influence market performance through to 2030.

Key Findings• UK rents are forecast to grow by 3.3% in 2026 and 16.8% between 2026-2030
• Higher mortgage costs are expected to keep more households in the rental market, supporting rental demand
• UK house prices are forecast to increase by 0.4% in 2026 before recovering more strongly from 2028 onwards
• London is expected to underperform in the short term, but supply constraints could support stronger growth later in the forecast period
• London new home sales remain subdued, with elevated levels of unsold stock continuing to weigh on the market

Download the full report for CBRE's latest residential market forecasts and regional outlooks through to 2030.