But a lot has happened since those predictions were first made.
With ongoing geopolitical tensions, the Iran conflict and their impact on inflation and interest rates, the economic landscape has shifted. So, are Dr. T's original predictions still on track, or has his outlook changed?
In his latest video, Dr. T revisits each of his ten property market predictions for 2026, explaining which forecasts remain unchanged, which have already started to materialise and where he now expects a different outcome.
Despite the changing economic environment, most of his original predictions remain the same, particularly his positive outlook for affordable rental properties in the North of England.
"These are my own opinions and things are not guaranteed to happen in this way, but this is what I now believe is likely."
Dr. TariqFounder of Find UK PropertyHere's how his ten forecasts are shaping up as we approach the end of 2026.
1.Interest Rates and Inflation: The Biggest Change
VerdictForecast revised
This is where Dr. T has made the most significant change to his original predictions. He initially anticipated that CPI inflation would fall to approximately 2% by the end of 2026, with economic growth of around 1.5% and the Bank of England reducing its base interest rate to 3.25%.
However, the effects of the Iran conflict have changed his outlook considerably. Dr. T now predicts that inflation could remain around 3.5%, while interest rates could potentially rise to 4% by January 2027 if the conflict continues. He still expects GDP growth to remain subdued at approximately 1.5% or slightly below.
| Measure | Original | Revised |
|---|---|---|
| CPI inflation | Approx. 2% | Approx. 3.5% |
| Bank of England base rate | 3.25% | Could rise to 4% by January 2027 |
| GDP growth | Approx. 1.5% | Approx. 1.5% or slightly below |
Dr. T's forecasts as stated in the video. The interest rate revision assumes the Iran conflict continues.
Higher borrowing costs could make homeownership less affordable, encouraging more households to remain in rented accommodation rather than purchasing their own homes. For investors, this could support continued demand for rental properties, particularly in affordable areas where demand for housing is already strong.
2.Housing Supply and Demand: The Shortage Continues
VerdictOriginal prediction unchanged
Dr. T remains confident in his original forecast that the UK's housing shortage will continue. The Government's target of building 1.5 million new homes over five years is already considered insufficient by Dr. T, and he also believes that achieving this target will prove difficult.
Rising construction costs, increased regulation and the financial risks associated with development are all creating challenges for housebuilders. Meanwhile, the number of households requiring accommodation is expected to continue growing.
The result is a familiar problem: demand for housing is outstripping supply. Dr. T expects this imbalance to place further upward pressure on rental prices and the value of affordable housing.
3.The Renters' Rights Act: Changes Already Taking Shape
VerdictOriginal prediction remains on track
One of Dr. T's earlier predictions was that the Renters' Rights Act would improve conditions for tenants while creating additional responsibilities and costs for landlords. He believes this is already influencing the rental market.
Although the legislation is designed to provide stronger tenant protections and improve housing standards, the increased regulatory burden may encourage some traditional landlords to reconsider their position.
However, Dr. T highlights another development: some property owners are moving towards passive investment arrangements instead of managing tenants and properties themselves.
Under a professional rent-back arrangement, investors own the property but rent it to a company, which then manages the property and sublets it to occupants. This is the approach offered by Find UK Property, where property owners receive contractually agreed rental income while Find UK Property handles onward letting and day-to-day management under its agreement.
The precise responsibilities of owners and operators depend on the terms of their agreements and applicable law.
4.Investors Moving from Savings and Shares into Property
VerdictTrend unchanged, but the reasons have shifted
Dr. T originally predicted that more investors would move away from cash savings, shares and bonds in favour of physical property. He still believes this shift is taking place, but not for the reason he initially anticipated.
Falling interest rates were expected to make savings accounts less appealing. Instead, rates have remained relatively high. According to Dr. T, the bigger influence is now concern about volatility and uncertainty in financial markets.
Some investors are increasingly attracted to physical assets that can provide ongoing income alongside the possibility of long-term capital appreciation. Although property carries its own risks, Dr. T believes affordable rental housing will continue to appeal to investors looking to diversify beyond traditional financial investments.
5.Rental Demand: Still Forecast to Rise
VerdictOriginal prediction unchanged
Dr. T's outlook for rental demand remains positive. Although some active landlords may leave the market because of regulatory changes and increased costs, others are expected to enter the sector or switch to more passive ownership models.
As a result, he anticipates that the overall number of rental properties will remain relatively stable. However, the demand for those properties is expected to increase.
Population growth, the continued housing shortage and high mortgage costs could all contribute to more households relying on rented accommodation. Higher costs for landlords may also place additional upward pressure on rents.
Dr. T predicts that, despite rising expenses, net percentage returns for investors and landlords will remain broadly unchanged by the beginning of 2027.
6.Property Transactions: Fewer Purchases Than Expected
VerdictForecast revised downwards
Dr. T initially predicted that UK property transactions would increase during 2026, estimating approximately 1.25 million purchases compared with around 1.15 million in 2025. However, with mortgage rates remaining higher than anticipated, he has revised this forecast.
He now expects total UK property transactions for 2026 to remain closer to 2025 levels. Interestingly, he also expects considerable regional differences.
While property transactions in London and southern England are expected to remain subdued, northern England is forecast to experience increased activity compared with the previous year. Affordability is becoming an increasingly important factor in where people choose to buy and invest.
7.Investment Property Purchases: Cash Buyers Leading the Way
VerdictOriginal prediction unchanged
Despite revising his forecast for overall property transactions, Dr. T is sticking with his prediction for investment purchases. He expects approximately 20% of all UK property purchases during 2026 to be investment properties.
With borrowing costs remaining high, Dr. T predicts that around 70% of investment property purchases could be made with cash. This is partly driven by his expectation that more investors will move capital out of savings and financial investments and into physical property.
Again, he expects investment activity to vary considerably by region, with lower transaction levels in London and the South but increasing activity across northern England. Lower purchase prices make northern properties particularly accessible to cash investors.
8.UK House Prices: Growth Still Expected
VerdictOriginal prediction unchanged
Despite higher interest rates and a challenging economic environment, Dr. T remains positive about the direction of UK house prices overall. His original forecast anticipated national property price growth of approximately 3% to 4% during 2026, and he has decided to stick with that prediction.
Dr. T believes several underlying factors will continue to support prices, particularly the increasing number of households, the shortage of available housing and sustained interest from property investors.
However, he emphasises that national averages do not tell the whole story. There are significant differences between the more expensive areas of London and southern England and the more affordable regions further north.
9.London and the South: Price Falls Remain a Possibility
VerdictOriginal prediction unchanged
Dr. T continues to anticipate a difficult year for the London property market. His original prediction was that London house prices would fall by approximately 5% during the 12 months to December 2026, and he has not changed that forecast.
He also expects other expensive areas of southern England to experience either static prices or modest declines of around 1%. Higher mortgage costs and affordability pressures are among the factors affecting these markets.
For investors, this is an important reminder that higher property values do not automatically translate into stronger investment performance. A more expensive property may require significantly more capital while delivering a comparatively lower rental yield.
10.Northern England: Still Expected to Lead the Market
VerdictOriginal prediction unchanged
Dr. T's final prediction is also one of his most positive, particularly for investors focusing on affordable properties in the North of England. He continues to believe that lower-cost houses in northern regions will experience some of the strongest demand, especially from investors and first-time buyers.
His original forecast anticipated price growth of around 5% to 7% in northern England during 2026, with the Midlands experiencing more moderate growth of approximately 3%. Neither prediction has changed.
| Region | Dr. T's 2026 forecast |
|---|---|
| London | Approx. -5% |
| Expensive areas of the South | 0% to -1% |
| Midlands | Approx. +3% |
| UK overall | +3% to +4% |
| Northern England | +5% to +7% |
Forecasts are for the 12 months to December 2026 and reflect Dr. T's opinions as expressed in the video.
As an example, Dr. T originally predicted that an affordable northern property valued at £85,000 at the end of 2025 could be worth approximately £90,000 by December 2026. He remains confident in that forecast.
This reflects his continued belief that properties at the more affordable end of the market could offer attractive opportunities for rental income and potential capital appreciation. Actual returns and price changes depend on the individual property, its location and wider market conditions.
Dr. T's 2026 Predictions: What's the Overall Verdict?
Having revisited all ten predictions, Dr. T's conclusion is that the majority of his original forecasts remain unchanged. There have been two particularly significant adjustments: higher inflation and interest rates than originally expected, and fewer overall property transactions.
However, he believes the fundamental drivers supporting affordable UK rental property remain largely intact.
"Despite all the negativity relating to interest rates, inflation and Renters Rights Act, the overall outlook for affordable UK rental property is good."
Dr. TariqFounder of Find UK PropertyFor Dr. T, the most promising opportunities remain in lower-cost residential properties across northern England, where affordability, rental demand and the potential for capital growth continue to support his outlook.
What Does This Mean for Property Investors?
While inflation, interest rates and regulations can influence the market in the short term, housing supply, affordability and rental demand remain central to longer-term property investment.
Investors also need to think carefully about the responsibilities associated with property ownership. Traditional buy-to-let can involve finding tenants, arranging repairs, meeting regulatory obligations and managing ongoing property expenses.
For those who would prefer to own a property without taking on those day-to-day responsibilities, professionally managed investment arrangements may provide an alternative.
Discover Passive Property Investment with Find UK Property
At Find UK Property, we specialise in making UK property investment accessible and hands-off for investors in the UK and overseas. Our approach allows clients to purchase renovated, income-producing freehold properties, primarily in affordable areas of northern England.
Investors own their properties outright and rent them back to Find UK Property, which manages the onward letting, routine maintenance and associated property costs in accordance with the contractual arrangement.
With over 2,500 properties under management, our established model is designed to provide investors with long-term rental income without the practical demands of traditional property management.
Our offering includes contractually agreed 7% net rental income on eligible property types, subject to the relevant terms and conditions.
Whether you're looking to diversify your investments, build a property portfolio or establish an additional income stream for retirement, our team can help you explore the available options.
Source and notes
Source: Dr. T's 2026 Property Market Predictions: How Are They Now?, Find UK Property on YouTube, October 2026.
Disclaimer: The market forecasts in this article represent Dr. T's opinions as expressed in the video, rather than guaranteed outcomes. Property prices, rental demand and investment returns can change. Investors should review all contractual terms, legal obligations and risks before making an investment decision.
