UK House Price Trends 2026
House prices across England and Wales are telling a nuanced story in 2026. Of 48 counties analysed, 16 are seeing year-on-year price growth while 32 are experiencing declines. This report breaks down exactly where prices are moving — and what it means for developers and investors.
Fastest Rising Markets
| # | Town | County | YoY Change | Median Price |
|---|---|---|---|---|
| 1 | Porthmadog | Gwynedd | +42.3% | £249,000 |
| 2 | Peterlee | County Durham | +16.7% | £77,000 |
| 3 | Bootle | Merseyside | +15% | £137,950 |
| 4 | Newtown | Powys | +12.4% | £213,500 |
| 5 | Builth Wells | Powys | +10% | £275,000 |
| 6 | Bangor | Gwynedd | +9.7% | £192,000 |
| 7 | Sandy | Bedfordshire | +8.1% | £335,000 |
| 8 | Leiston | Suffolk | +7.4% | £255,000 |
| 9 | Devizes | Wiltshire | +6.9% | £310,000 |
| 10 | Wells | Somerset | +6.8% | £347,000 |
| 11 | Caernarfon | Gwynedd | +6.7% | £192,000 |
| 12 | Neath | Swansea | +6.7% | £160,000 |
| 13 | Knaresborough | North Yorkshire | +6.6% | £357,000 |
| 14 | Washington | Tyne and Wear | +5.8% | £145,000 |
| 15 | Bethesda | Gwynedd | +5.4% | £195,000 |
Porthmadog leads with +42.3% growth. Rising markets offer developers the dual benefit of increasing land values and strengthening end values during the build period.
Markets Under Pressure
| # | Town | County | YoY Change | Median Price |
|---|---|---|---|---|
| 1 | Retford | Nottinghamshire | -13.6% | £190,000 |
| 2 | Alnwick | Northumberland | -13.3% | £260,000 |
| 3 | Preston | Lancashire | -12.4% | £166,500 |
| 4 | Kendal | Cumbria | -12.3% | £250,000 |
| 5 | Attleborough | Norfolk | -12% | £264,000 |
| 6 | Penrith | Cumbria | -11.3% | £230,500 |
| 7 | Blackburn | Lancashire | -10.9% | £147,000 |
| 8 | Welshpool | Powys | -10.2% | £220,000 |
| 9 | Workington | Cumbria | -9.7% | £135,500 |
| 10 | Marlow | Buckinghamshire | -9.6% | £610,000 |
| 11 | Bodmin | Cornwall | -9.4% | £240,000 |
| 12 | Goole | East Riding of Yorkshire | -9.4% | £180,000 |
| 13 | Stamford | Lincolnshire | -9.4% | £290,000 |
| 14 | Camborne | Cornwall | -8.7% | £210,000 |
| 15 | Dolgellau | Gwynedd | -8.1% | £199,975 |
Declining markets are not necessarily bad for developers. Lower land values reduce acquisition costs, and well-timed development through a market trough can deliver strong returns as prices recover. The key is ensuring conservative appraisals and adequate finance contingency.
What This Means for Development Finance
Price direction affects every aspect of development finance. In rising markets, lenders are more comfortable with forward-looking valuations and may offer higher LTV ratios. In falling markets, valuers will be more conservative, and developers should expect lenders to stress-test their appraisals.
Regardless of market direction, Construction Capital works with 100+ lenders to find competitive terms. Submit your scheme via our deal room.
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5 min readFrequently Asked Questions
Where are house prices rising fastest in the UK?
Porthmadog in Gwynedd is seeing the fastest growth at +42.3% year-on-year.
Where are house prices falling in the UK?
Retford in Nottinghamshire has seen the largest decline at -13.6% year-on-year. However, price declines can create opportunities for developers buying land at lower values.