The UK housing market is on the up
Buyers are returning to the housing market at the start of 2026 as confidence improves and mortgage rates fall, Zoopla’s latest UK House Price Index shows. At the same time, a growing number of homes for sale is giving buyers more choice and reshaping market conditions, according to
The data shows that buyer demand has rebounded since the beginning of the year, following a quieter end to 2025, when many households delayed moving decisions amid uncertainty around the autumn Budget. Activity levels are now broadly in line with early 2024, down 9% , although they remain below last year’s unusually strong start, when buyers rushed to complete purchases ahead of stamp duty changes.
“Fierce competition in the mortgage market and lower mortgage rates are supporting confidence. The average five-year fixed mortgage rate (75 per cent LTV) has fallen to four per cent, its lowest level since 2022, improving affordability and enabling more households to consider a move,” Zoopla sadi.
“At the same time, buyers are entering a very different market from a year ago. The total number of homes for sale is 6% than last year, with estate agents marketing the largest number of properties seen in eight years. This increase in supply is easing competition between buyers and placing greater emphasis on realistic pricing and good presentation from sellers.”
The average price of a house right now
Zoopla’s data shows that the average UK house price increased by 1.2% over the last 12 months, increasing by £3,200 to stand at £269,800 at the end of 2025.
Prices have increased up to four faster in more affordable parts of the Midlands, northern England, Scotland and Northern Ireland. In contrast, smaller price falls of -0.1% were recorded across the South-East and South-West regions.
“Buyers in southern England are more price-sensitive due to higher buying costs and a greater supply of homes for sale. London now has significantly more homes on the market than a year ago, reinforcing a buyers’ market in the capital and pushing prices lower over 2025,” Zoopla said.
Looking forward, the positive momentum in the housing market is set to continue through the start of the year, Zoopla said.
“More homes for sale means more buyers in the market. This shows the desire to move home remains, but sellers must factor in local market conditions as they plan their move. Zoopla expects current trends in market activity to continue over the early part of the year. There is good demand for homes that are well priced. ”
