UK Residential Forecasts Q1 2026

CBRE’s UK Residential Forecasts Q1 2026 sets out our outlook for rental and sales markets, as the sector adjusts to persistent supply constraints, shifting affordability and an improving economic backdrop.

Ongoing supply shortages are expected to support continued rental growth in 2026, albeit at a slower pace than in 2025. As affordability improves, rental growth is forecast to return to a more sustainable level, driven by CPI inflation and earnings. London is expected to outperform the UK, reflecting more acute supply constraints.

House price growth is forecast to slow in 2026, as elevated stock levels and uncertainty around mortgage rates weigh on demand. Beyond this, economic recovery and ongoing undersupply are expected to support stronger house price growth over the remainder of the forecast period.

Download the full report to explore our detailed forecasts for rents, sales volumes and house prices across the UK and London.