As we step into a new year, it’s a question I’m hearing more and more from Lancaster homeowners.
Should you bring your home to market now, or wait until later in the year? And hanging over that decision is the big one: what’s actually going to happen to Lancaster house prices in 2026?
In conversations I’ve had recently with buyers, sellers and landlords across Lancaster, the same concerns keep coming up. First-time buyers worry about buying just before prices dip. Homeowners wonder whether prices might rise further and if they should wait. Some landlords feel stuck, unsure whether to buy more or start selling.
No one has a crystal ball, but when you strip away the headlines and speculation, the fundamentals of the Lancaster market are actually very clear.
House prices, at their core, are driven by one simple relationship: supply and demand. When there are more buyers than homes, prices are supported. When supply outweighs demand, prices soften. That rule hasn’t changed — and it’s what really matters.
What’s happening with supply in Lancaster?
The number of homes for sale tells us far more than any prediction. Looking back, Lancaster started January 2020 with around 870 homes on the market. That dropped sharply during the pandemic years, reaching just 388 homes by early 2022 — a period when prices were rising quickly.
Fast forward to the start of 2026, and we’re back at around 876 homes for sale. On paper, that might sound high, but context is everything. In 2008, Lancaster regularly had between 1,600 and 1,700 homes on the market. We are nowhere near those levels.
The pandemic triggered a “race for space”, pushing many households to move sooner than planned. Demand surged, supply tightened, and prices rose. What we’re seeing now is not excess supply — it’s a return to a more balanced, healthier market.
That balance is important. It gives buyers more choice and keeps prices realistic rather than overheated.
What about demand?
Demand is measured by how many homes actually sell. In Lancaster, around 1,058 homes changed hands in 2025 — very similar to 2024 and comfortably in line with long-term averages.
Demand today is supported by several things that weren’t present during previous downturns. Mortgage availability is far stronger. Most homeowners are on fixed rates between 3% and 5%, wages are rising, and unemployment remains low. There’s far less pressure forcing people to sell.
This is very different from 2007–2008, when rising unemployment and restricted lending caused demand to fall sharply.
Is 2026 a good year to buy in Lancaster?
That really comes down to personal circumstances, not trying to time the market perfectly.
If the right home is available, affordable and suits your needs, waiting can often work against you. Buying a home is a long-term decision, usually over 25 to 35 years. Delaying for the “perfect” moment can mean never getting started.
Mortgage payments for first-time buyers, as a share of take-home pay, are still significantly lower than they were in the mid-2000s. There are also more mortgage options available now, including 5% deposit products, which weren’t accessible to many buyers a couple of years ago.
For landlords, steady house prices combined with rising rents are helping to support rental yields across Lancaster.
So, what’s my view on Lancaster house prices in 2026?
Assuming inflation remains under control and interest rates ease slightly, I expect Lancaster house prices to grow by around 1% to 2% this year — very similar to what we saw in 2025. Some areas and property types will do better than that, others a little less.
The key is affordability. Build in resilience, plan for future rate changes, and make decisions that work for your own situation.
That approach has always served Lancaster homeowners well — whatever the wider market is doing.
These are my views. I’d love to know yours. Mt name is Michelle Gallagher. You can call me on 01524 843322 or email me at michelle@jdg.co.uk
Thanks for reading
Michelle x