House prices are not expected to rise any further this year, according to a new housing market report from ING. In major cities, price growth is likely to trail behind the national average, with experts suggesting costs could even dip slightly in the short term. This marks the first time in years that a bank has predicted an end to the continuous growth of the property market.
The primary reason for this shift is a growing supply of homes, especially former rental properties. Private landlords are selling up because stricter regulations and high taxes have made renting out homes less profitable. At the same time, slightly higher mortgage rates and a more cautious mood among buyers are beginning to cool demand.
Despite this cooling effect, the total price growth for 2026 is still expected to sit at around 1.5 per cent because of sharp increases earlier in the year. Looking ahead to next year, the bank forecasts a modest rise of roughly 2 per cent.
Investors are increasingly offloading rental properties in large cities and university towns. This trend is expected to continue throughout the year before slowing down in 2027. Furthermore, the market will see more availability as people move into newly built homes and put their previous properties up for sale.
ING predicts that 240,000 existing homes will be sold this year, a figure similar to 2025. This volume is just below the record set in 2017. However, other banks like ABN AMRO have warned that current government policies are failing to stop the exodus of landlords, which could ultimately lead to a shortage of affordable homes for renters.
@anp | NEWS BRAINPORT
