Interest Rates & Mortgage Conditions in 2026
Mortgage affordability remains the key driver of activity.
Current market expectations for 2026 suggest:
Base rates are likely to remain broadly stable, with potential for modest reductions.
Typical five-year fixed mortgage rates are expected to settle in the mid-3 to low-4 percent range.
Lending conditions are more predictable than in 2024 and early 2025.
Cardiff House Price Forecast for 2026
National forecasts applied to Cardiff’s affordability and demand fundamentals indicate moderate growth.
Major forecasters project:
Nationwide: 2 to 4 percent UK house price growth.
Rightmove: around 2 percent growth in asking prices.
Zoopla: approximately 1.5 percent growth driven by balanced supply and demand.
Data from the Office for National Statistics UK House Price Index for the Cardiff local authority shows:
Average Cardiff house price at the end of 2025: approximately £260,000.
Annual price growth: around 2 to 3%.
Prices remained positive throughout 2025 despite higher borrowing costs.
Strongest price performance in established residential areas and centrally located apartments.
Expected average price growth: approximately 2 to 3.5%.
