Is 2026 a Good Year to Buy a New Home in Portsmouth?

Chinneck Shaw – Estate Agents in Portsmouth & Southsea

If you’re considering buying a home in Portsmouth or Southsea in 2026, the timing may be more favourable than you think. After a period of market adjustment nationally, the property landscape has stabilised, and Portsmouth is showing the kind of steady, sustainable conditions that create opportunity for both first-time buyers and second steppers.

With improving mortgage availability, balanced pricing, and consistent demand driven by the city’s strong employment and coastal lifestyle appeal, 2026 is shaping up to be a constructive year to move.

What the Statistics Says

According to the Office for National Statistics, average house prices across Portsmouth in late 2025 were approximately £290,000 – £300,000, reflecting modest annual growth rather than sharp increases.

ONS data also shows:

• First-time buyer average price: approximately £240,000 – £250,000
• Mortgage-funded purchases: typically just under £295,000
• Price growth: steady rather than volatile, broadly in line with regional South East trends

This data highlights a key point: Portsmouth remains comparatively more accessible than many neighbouring South Coast locations, while still offering long-term resilience.

A Balanced Local Market

Portsmouth’s housing market in 2026 is defined by stability.

Following the higher interest rate period of 2023 – 2024, the market has recalibrated. Sellers are pricing more realistically, and stock levels are healthier than during the post-pandemic rush.

We are seeing:

✔ More choice for buyers
✔ Sensible negotiation opportunities
✔ Reduced bidding-war pressure
✔ Continued demand for well-presented homes

This balance is particularly positive for proceedable buyers with mortgage agreements in place.

Mortgage Rates and Lending Conditions

Mortgage conditions have improved significantly compared to their recent peak. While rates are not at historic lows, they are more predictable and competitive.

In 2026:

• Lenders are actively competing for business
• 90 – 95% loan-to-value mortgages are widely available
• Fixed-rate products offer greater payment certainty
• Affordability stress testing has become more consistent

For first-time buyers, this increased product range has reopened pathways into homeownership. For second steppers, refinancing and porting mortgages have become more manageable, reducing barriers to moving.

Stability – rather than dramatic rate cuts – is what’s restoring buyer confidence.

First-Time Buyers: A Window of Opportunity

Portsmouth has long been attractive to first-time buyers due to:

• A strong supply of flats and smaller terraced homes
• Employment driven by the naval base, university, and service industries
• Relative affordability compared to surrounding South Coast hotspots

With ONS figures showing first-time buyer prices holding steady rather than accelerating sharply, 2026 presents an opportunity to buy into a stable market without excessive upward pressure.

In addition, rental demand remains strong in Portsmouth – meaning many renters are deciding that owning offers better long-term value.

Second Steppers: Family and Lifestyle Moves

For second steppers, Portsmouth offers diverse housing options:

• Victorian terraces in central areas
• Larger family homes in areas such as Milton and Drayton
• Coastal properties with water views

We’re seeing steady demand for three and four-bedroom homes, particularly those offering:

• Energy efficiency improvements
• Garden space
• Home office flexibility

With more listings available than in previous years, second steppers are finding it easier to align sale and purchase without intense time pressure.

Buyer Trends in 2026

Several themes are shaping Portsmouth’s market this year:

• Lifestyle focus – Coastal living and walkability remain strong drivers.
• Energy efficiency awareness – Buyers increasingly consider EPC ratings and running costs.
• Cautious optimism – Buyers are confident but pragmatic.
• Steady price growth – Forecasts suggest modest increases rather than sharp spikes.

This creates a healthier long-term environment compared to speculative market conditions.

Our Verdict: Is 2026 a Good Year to Buy in Portsmouth?

Yes – particularly for well-prepared buyers.

✔ ONS data shows steady, sustainable pricing
✔ Mortgage conditions are competitive and stable
✔ Supply levels give buyers more choice
✔ Portsmouth remains relatively affordable within the South East
✔ Demand is underpinned by strong local employment and lifestyle appeal

For first-time buyers, this is a year of improved accessibility.
For second steppers, it’s a market that allows confident, strategic moves.

As always, preparation is key: secure mortgage advice early, understand your budget clearly, and work with experienced local professionals who understand Portsmouth’s micro-markets.

In a stable market like 2026, informed buyers are in a strong position, and Portsmouth continues to offer excellent long-term value on the South Coast.

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