As we enter a new year, many Reading homeowners are facing a familiar question. Should they bring their Reading home to market in January, or wait until late spring?
In recent conversations with Reading buyers, sellers, and buy-to-let landlords in the run-up to Christmas, one question kept coming up.
What will happen to Reading house prices in 2026?
First-time buyers worry they are about to purchase just before a downturn. Homeowners want to know whether there will be a surge in prices and, if so, where the market peak might be before they sell. Some landlords feel uncertain, unsure whether to buy more property or begin selling part of their portfolio.
No one has a crystal ball. Most property experts are not predicting doom and gloom. Equally, few are forecasting a boom.
So what really drives the Reading property market?
When people ask where Reading house prices are heading, they often look for predictions or bold headlines. In reality, house prices are driven by something far simpler.
House prices are, at their core, a function of demand and supply.
When there are more buyers than homes available, prices are supported. When there are more homes than buyers, prices soften. Strip away the noise and this relationship has never changed.
The number of homes available for sale tells us far more about the likely direction of Reading house prices than any headline forecast.
At the start of:
January 2020 there were 1,293 homes for sale in Reading
January 2021: 1,442
January 2022: 1,076
January 2023: 1,198
January 2024: 1,223
January 2026: 1,378
As you can see, supply fell sharply in 2022, which coincided with rising house prices. As we enter 2026, the number of Reading homes for sale has returned to roughly 2020 levels, slightly higher, but still well below historic highs.
During the pandemic, many households reassessed what they wanted from their homes. Space, flexibility, and lifestyle became priorities. Moves that might have been spread over several years were brought forward into a shorter period. Demand increased, available stock reduced, and prices rose as a result.
Some homeowners now ask whether higher supply means a house price crash is coming. Context is important.
In 2008, there were between 2,600 and 2,700 homes for sale in Reading at any one time. We are nowhere near those levels today. Unless supply rises back towards that territory, a significant price crash remains unlikely.
I regularly share local insights for homeowners who want to stay informed about conditions in the town through mymarket insights.
Demand is measured by the number of homes that actually sell.
2020: 2,006 Reading homes sold
2021: 2,903
2022: 2,735
2023: 2,158
2024: 2,338
2025: 2,357
(Reading defined as RG1, RG2, RG4, and RG6.)
Demand is driven primarily by mortgage availability, affordability, and interest rates.
In 2007, typical mortgage rates sat between 6.5% and 7.5%. When the economy weakened and unemployment rose sharply, mortgage availability collapsed. Forced sales increased, demand fell, and house prices followed.
This cycle looks very different.
Most homeowners today are on mortgage rates between 3% and 5%. Real wages are increasing, unemployment remains low, and there is far less pressure forcing people to sell their Reading homes. That underlying stability continues to support prices.
This depends far more on personal circumstances than on trying to time the market.
If the right Reading home is available, affordable, and suits your needs, waiting can often be counterproductive. Buying a home is a long-term decision, typically over 25 to 35 years. Waiting for the perfect moment can mean never starting at all.
Nationally, mortgage payments for first-time buyers are around 26.5% cheaper as a percentage of take-home pay than in 2007. Every month spent waiting is another month of rent paid with no long-term return.
Low interest rates for buyers with solid deposits mean there are still attractive fixed-rate mortgage deals available. Buyers with smaller deposits can still access 5% deposit mortgages, albeit at slightly higher rates, but still below the peaks seen 18 months ago.
If you are considering selling, understanding what your home could realistically achieve in today’s market is essential. Many local homeowners start with a Reading property valuation before deciding their next step.
While capital growth may be more modest, rents across many parts of Reading continue to rise faster than inflation. This has improved rental yields and helped offset higher mortgage costs for many landlords.
For landlords with sensible borrowing levels and long-term strategies, the fundamentals of the Reading rental market remain supportive.
Taking supply, demand, affordability, and lending conditions into account, my view is that Reading house prices are likely to rise by around 1% to 2% during 2026, broadly in line with 2025.
This is an average. Some locations and property types will outperform, while others may see flatter performance.
Price behaviour can vary significantly by area. TheEarley property market, Caversham house prices, and Tilehurst homes often behave differently within the wider Reading market.
For homeowners weighing up whether 2026 is the right time to move, strategy matters just as much as timing. Pricing, presentation, and targeted marketing can have a significant impact when selling your home in Reading.
Affordability remains the key factor. Buyers should plan for future rate changes, build financial resilience, and make decisions that work for their own circumstances.
Do that, and you will be well placed whatever the Reading property market does next.
These are my views. What are yours?
Will Reading house prices fall in 2026?
A major fall looks unlikely unless there is a sharp rise in unemployment or a significant increase in housing supply. Current conditions suggest relative stability.
Will Reading house prices rise in 2026?
Most indicators point to modest growth of around 1% to 2%, rather than a boom.
Is 2026 a good year to sell a house in Reading?
For well-priced and well-presented homes, buyer demand remains steady. Strategy and pricing are key.
Is now a good time to buy in Reading?
If the property is affordable and suits your long-term needs, market timing is less important than personal circumstances.
Do different areas of Reading perform differently?
Yes. Areas such as Earley, Caversham, and Lower Earley can behave very differently depending on buyer demand and housing stock.