Thematic Report5 min readUpdated April 2026

UK House Price Changes: Where Prices Are Rising and Falling in 2026

16 counties rising, 32 falling. Full town-by-town breakdown.

ML

Matt Lenzie

Founder, Construction Capital

Published 8 April 2026

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

#TownCountyYoY ChangeMedian Price
1PorthmadogGwynedd+42.3%£249,000
2PeterleeCounty Durham+16.7%£77,000
3BootleMerseyside+15%£137,950
4NewtownPowys+12.4%£213,500
5Builth WellsPowys+10%£275,000
6BangorGwynedd+9.7%£192,000
7SandyBedfordshire+8.1%£335,000
8LeistonSuffolk+7.4%£255,000
9DevizesWiltshire+6.9%£310,000
10WellsSomerset+6.8%£347,000
11CaernarfonGwynedd+6.7%£192,000
12NeathSwansea+6.7%£160,000
13KnaresboroughNorth Yorkshire+6.6%£357,000
14WashingtonTyne and Wear+5.8%£145,000
15BethesdaGwynedd+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

#TownCountyYoY ChangeMedian Price
1RetfordNottinghamshire-13.6%£190,000
2AlnwickNorthumberland-13.3%£260,000
3PrestonLancashire-12.4%£166,500
4KendalCumbria-12.3%£250,000
5AttleboroughNorfolk-12%£264,000
6PenrithCumbria-11.3%£230,500
7BlackburnLancashire-10.9%£147,000
8WelshpoolPowys-10.2%£220,000
9WorkingtonCumbria-9.7%£135,500
10MarlowBuckinghamshire-9.6%£610,000
11BodminCornwall-9.4%£240,000
12GooleEast Riding of Yorkshire-9.4%£180,000
13StamfordLincolnshire-9.4%£290,000
14CamborneCornwall-8.7%£210,000
15DolgellauGwynedd-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.

County-Level Price Direction

At county level, the strongest growth is in Gwynedd (+9.5%), Swansea (+4.2%), Powys (+2.3%).

Counties seeing declines include Northumberland (-5.7%), Cornwall (-5.1%), Devon (-4.9%).

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.

Frequently 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.

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