New data published by Nationwide shows UK house prices returning to modest annual growth at the start of 2026, following a subdued second half of last year. Rather than signalling a strong rebound, this feels more like the market settling into a period of relative stability after prolonged uncertainty. According to the Nationwide House Price Index, annual growth has edged back into positive territory, supported by easing mortgage rates and more realistic pricing in many local markets.
For housing associations and registered providers, this stability matters. Affordable home ownership products such as shared ownership and shared equity rely on predictable valuations, lender confidence and buyers who feel able to commit. When prices fluctuate less, mortgage approvals become more consistent, valuation risk reduces and sales progression improves.
That said, stabilising prices do not remove the structural pressures facing affordable housing delivery. Construction costs remain elevated, professional fees have not fallen back materially, and compliance requirements continue to expand. In many cases, demand for affordable housing is not the constraint. The challenge is converting that demand into schemes that are genuinely viable and deliverable.
A steadier market does, however, create space to focus on fundamentals. Clear tenure strategies, realistic pricing assumptions and robust sales processes are increasingly important. For registered providers, the opportunity is to align delivery more closely with local incomes and affordability, rather than relying on market growth to solve viability challenges.